Macroeconomics 12th Edition by Michael Parkin

Exercise 3

Lori is a student who teaches golf on Saturdays. In a year, she earns $20,000 after paying her taxes. At the beginning of 2014, Lori owned $1,000 worth of books, DVDs, and golf clubs and she had $5,000 in a savings account at the bank. During 2014, 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 2014
b. What was her wealth at the end of 2014