Question

Jim earns $100,000 a year at his job. He owes $20,000 a year for his home mortgage payment, and $30,000 a year for his combined cabin, boat, and car payments. What is Jim's yearly accumulated wealth before he spends anything on himself or his family?

Answer 1

Answer: $50,000

Explanation:

From the question, we are informed that Jim earns $100,000 a year at his job and that he owes $20,000 a year for his home mortgage payment, and $30,000 a year for his combined cabin, boat, and car payments.

Jim's yearly accumulated wealth before he spends anything on himself or his family will be his earnings less the amount owed. This will be:

= $100,000 - ($20,000 + $30,000)

= $100,000 - $50,000

= $50,000