Neil and Nancy are married with two children at home and a mortgage. Neil's net pay per year is $56,000 and Nancy doesn't have any income. Their mortgage payment of $1,500 includes insurance on their home. They have additional monthly expenses of $3,500. Neil contributes 10% of his earnings to a retirement fund and they have $16,000 in savings. There is a $500,000 life insurance policy on Neil but none on Nancy. As their financial advisor, what part of Neil and Nancy's financial plan would you encourage them to work on?

their current cash flow is negative since their expenses are higher than their income:

they have 3 options:

Personally I believe that option 2 is the best, but if they definitely cannot lower their monthly expenses, then option 3 would probably fit them.

(0,-3) see attached graph

step-by-step explanation:

a. to solve the system, graph the two equations.

x = y+3 becomes y=x-3 has m=1/1 and b=-3. start at (0,-3) on the y-axis and plot a point. then move up 1 unit and 1 unit to the right. plot a point and connect.

y=-4x+3 has m =-4/1 and b=-3. start at (0,-3) on the y-axis and plot a point. then move down four units and to the right 1 unit. plot a point and connect.

the solution is the point (x,y) where the two lines intersect. by the graph below it is (0,-3).

b. to solve by substitution, substitute y = -4x-3 into x= y+3

x= (-4x-3) +3

x=-4x

5x=0

x=0

now substitute x = 0 back in to find y.

y= -4(0)-3

y=0-3

y=-3

solution is (0,-3)

c. use elimination by adding the equations together.

x-y=3

4x+y=-3

5x=0

x=0

then substitute into one equation to find y.

y=-4(0)-3

y=-3

2,160 π

step-by-step explanation: