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1. Calculate the Gross Debt Service (GDS) and the Total Debt Service (TDS) ratios for the following data. (5 marks) Monthly mortgage payment = $2,725

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1. Calculate the Gross Debt Service (GDS) and the Total Debt Service (TDS) ratios for the following data. (5 marks) Monthly mortgage payment = $2,725 Property taxes = $325 Heating costs = $240. Other housing costs = $195 Personal loan payment = $275 Car loan payment = $325 Credit card payment = $275 Gross monthly household income = $14,050 2. What amount would a person with actual cash value (ACV) coverage receive for three-year- old furniture destroyed by a fire? The furniture cost $2,740 originally but would cost $5,480 to replace today and had an estimated life of six years. (2 marks) 3. Beverly and Kyle Nelson currently insure their cars with separate companies paying $450 and $375 a year. If they insured both cars with the same company, they would save 10 percent on the annual premiums. What would be the future value of the annual savings over ten years based on an annual interest rate of 6 percent? (4 marks)

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