3. Case Study Tracey would like to purchase a condo worth $450,000 with condo fees (includes utilities) of $400/mo. annual taxes of $1,800 and closing costs of $4,500. . . She works as a Marketing Coordinator earning $90,000/yr gross income (net income $63,000) Her current expenses include rent ($1,500/mo), food & clothes ($500/mo), cell & intranet ($100/mo). gym membership ($50/mo), travel/entertainment ($200/mo), miscellaneous ($150/mo) Assets include: a car ($10,000), RRSPs ($30,000), a savings account ($20,000) and a recent inheritance of $50,000 Liabilities include: a car loan ($150/mo, $900 outstanding), a credit card with a $10,000 limit paid in full monthly. Based on the information above show your calculations for each of the following questions: A) Calculate Tracey's current monthly cash flow. Does she have a cash flow surplus or shortfall? B) To help Tracey understand how much she will need for a down payment. a) determine 2 down payment options/amounts for Tracey (high ratio & conventional); b) identify Tracey's source of funds for the down payment C) Calculate Tracey's monthly mortgage payment if she had a conventional mortgage on her new condo with a 5-year term at a fixed rate of 5.35%, and a 25 year amortization D) Calculate Tracey's Gross Debt Service Ratio if she owned the condo E) Calculate Tracey's Total Debt Service Ratio if she owned the condo F) If Tracey had a good credit score do you think she would be approved for this mortgage? Why? 120