3. John Jacobs looks over his balance sheet from the beginning of the month. He observes that his assets include: (i) a market value of $120,000 for his home; (ii) $25,000 in corporate stock; (iii) a Treasury bill with a face value of $1,000 to be received at the end of the month, for which the current market value was $983; (iv) a bank deposit account of $6,000; and (v) some miscellaneous items that he values at $35,000. His only outstanding liability is the mortgage on his house, which has a balance totaling $40,000. It is now the end of the month and he just received his $6,000 salary, along with the income from the maturing T-bill and interest on his bank deposits, which were paying an annualized interest rate of 2 percent (2/12 percent per month). His mortgage payment was $1,500, of which $500 would go toward the principal. His other expenses for the month came to $4,000. He had planned to make an additional house payment for the month, all of which would go to paying down the principal on the loan. However, his daughter is in college and wants to go to the Bahamas for spring break. The expense of her trip would be an additional $1,800.