Let us examine the assets of the Chang family in 2007 and 2008.
### Assets in 2007
- Home value: \[tex]$315,000
- Car value: \$[/tex]10,000
- Savings: \[tex]$2,000
The total assets in 2007 are calculated as:
\[ \text{Total Assets in 2007} = \text{Home value} + \text{Car value} + \text{Savings} \]
\[ \text{Total Assets in 2007} = 315,000 + 10,000 + 2,000 = \$[/tex]327,000 \]
### Assets in 2008
- Home value: \[tex]$325,000
- Car value: \$[/tex]6,000
The total assets in 2008 are calculated as:
[tex]\[ \text{Total Assets in 2008} = \text{Home value} + \text{Car value} \][/tex]
[tex]\[ \text{Total Assets in 2008} = 325,000 + 6,000 = \$331,000 \][/tex]
### Observation on Assets
From 2007 to 2008, the total assets increased from \[tex]$327,000 to \$[/tex]331,000.
### Liabilities in 2007
- Mortgage: \[tex]$265,000
- Car loan: \$[/tex]5,000
The total liabilities in 2007 are calculated as:
[tex]\[ \text{Total Liabilities in 2007} = \text{Mortgage} + \text{Car loan} \][/tex]
[tex]\[ \text{Total Liabilities in 2007} = 265,000 + 5,000 = \$270,000 \][/tex]
### Liabilities in 2008
- Mortgage: \[tex]$240,000
- Car loan: \$[/tex]1,000
- Credit card debt: \[tex]$1,500
The total liabilities in 2008 are calculated as:
\[ \text{Total Liabilities in 2008} = \text{Mortgage} + \text{Car loan} + \text{Credit card debt} \]
\[ \text{Total Liabilities in 2008} = 240,000 + 1,000 + 1,500 = \$[/tex]242,500 \]
### Observation on Liabilities
From 2007 to 2008, the total liabilities decreased from \[tex]$270,000 to \$[/tex]242,500.
### Conclusion
The proper answer is:
[tex]\[ \text{(d) From 2007 to 2008, assets increased and liabilities decreased.} \][/tex]
