Jakob received a $1,000-a-year raise in January, sold stocks in March for $6,000 that were originally purchased for $4,000, and in July had a $100 monthly increase in mortgage payments on his adjustable rate mortgage. The increased mortgage payment started in July and was in effect for the remainder of the year. What was the total impact on Jakob's cash flow for the year?

Question

Quizplus · Accepted Answer

The raise increased Jakob's cash flow by $1,000. The sale of stocks increased his cash flow by $2,000 ($6,000 - $4,000). The increase in mortgage payments decreased his cash flow by $600 ($100 x 6 months). The total impact on Jakob's cash flow for the year is $1,000 + $2,000 - $600 = $6,400.

Jakob Received a $1,000-A-Year Raise in January, Sold Stocks in March