1) Andrea comes to see you for a $15,000 loan. The payments will be $320. She rents for $750. Her insurance is $200. She has a credit card with a $5000 limit and $75 payment, and a credit line with a $5000 limit and payment of $150. She earns $40,000. Her income taxes are $7,500, CPP & EI are $2800. What are her TDS/GDS? Based solely upon them, would Andrea get the loan? What is her debt payments to income ratio? Is it reasonable?

2) Compute the payment for the above loan assuming an APR of 10% and a 5 year term. (eg. The $320 above is an estimate, determine the exact amount it should be.)