To determine the correct answer, we will first analyze the assets and liabilities for the years 2007 and 2008.
### Assets for 2007
1. Home value: [tex]$315,000
2. Car value: $[/tex]10,000
3. Savings: [tex]$2,000
The total assets for 2007 are:
\[ 315,000 + 10,000 + 2,000 = 327,000 \]
### Liabilities for 2007
1. Mortgage: $[/tex]265,000
2. Car loan: [tex]$5,000
The total liabilities for 2007 are:
\[ 265,000 + 5,000 = 270,000 \]
### Assets for 2008
1. Home value: $[/tex]325,000
2. Car value: [tex]$6,000
The total assets for 2008 are:
\[ 325,000 + 6,000 = 331,000 \]
### Liabilities for 2008
1. Mortgage: $[/tex]240,000
2. Car loan: [tex]$1,000
3. Credit card debt: $[/tex]1,500
The total liabilities for 2008 are:
[tex]\[ 240,000 + 1,000 + 1,500 = 242,500 \][/tex]
Next, we compare the total assets and liabilities for both years.
### Comparison of Assets
[tex]\[ 331,000 \text{ (2008 assets)} > 327,000 \text{ (2007 assets)} \][/tex]
### Comparison of Liabilities
[tex]\[ 242,500 \text{ (2008 liabilities)} < 270,000 \text{ (2007 liabilities)} \][/tex]
From the analysis, we conclude that:
- The assets of the Chang family increased from 2007 to 2008.
- The liabilities of the Chang family decreased from 2007 to 2008.
Given these results, the correct answer is:
d. From 2007 to 2008, assets increased and liabilities decreased.
