Macroeconomics 11th Edition by Michael Parkin

Exercise 32

Lori is a student who teaches golf on the weekend and in a year earns $20,000 after paying her taxes. At the beginning of 2012, Lori owned $1,000 worth of books, DVDs, and golf clubs and she had $5,000 in a savings account at the bank. During 2012, the interest on her savings account was $300 and she spent a total of $15,300 on consumption goods and services. There was no change in the market values of her books, DVDs, and golf clubs.
a. How much did Lori save in 2012?
b. What was her wealth at the end of 2012