A) Advising Lucy and Ricky. Lucy and Ricky want advice from your financial advising firm. They have provided the following information. They graduated from university four years ago and they have good jobs, but neither of them has paid much attention to their finances. Lucy works for an accounting firm and is now making $68,000 a year in her position. Ricky works in technology, got his master degree right after college, and is making $78,000 a year. They have a total of $14,000 in their checking account at ATB. Lucy inherited $26,000 from her grand-mother a year ago. She has the check in her drawer in the home office, and she has not deposited it in the bank yet. Lucy carries $5,000 on her credit card, which charges an APR of 21%. Ricky has a credit card that charges an APR of 19% and he carries a balance of $2,500. They pay the minimum payment each month on their credit cards, the amount specified on the credit card statements. They purchased a condo 4 years ago, and have estimated they have $150,000 equity. They are considering selling their condo, and using the equity as a down payment to buy a larger home. They have qualified for one that has a purchase price of $550,000. They are planning for a 5-year term and 20 year amortization period, and are approved for a mortgage rate of 2.2% compounded semi-annually. Lucy is pregnant and they would like to set aside money for their child' education. They are considering two different scenarios: a) How much should they set aside today to have $60,000 18 years from now, assuming they can earn 5% per year compounded seminannually on their investme b) How much should they set aside each year for the next 18 years starting now, to have $60,000 in 18 years, assuming an interest rate of 4.75% compounded quarterly? 5 marks 2) They would like to know how much they will have in 30 years if they leave their current savings (the money they have in the bank and Lucy's inheritance) in a checking account earning 1% per year versus investing and getting an average return of 6% per year. N= PMT = 1% per year: 6% per year: Rate = PV = N= Rate = PMT= PV = 3) How long would it take to pay off their credit cards if they each were to pay $150 each month and not charge anything further on it? *hint: use the nper function divided by 12 to get the #years 5 marks Lucy: EAR: # Years: Ricky: EAR: # Years: 4) For the mortgage on a new home: *Copy the loan amortization template onto the next worksheet and reference the correct cells from there to answer the following questions. 10 marks i) What is the bi-weekly mortgage payment amount? ii) How much interest is paid after the first 5 years? iii) How much principal is paid back after the first 5 years? A) Advising Lucy and Ricky. Lucy and Ricky want advice from your financial advising firm. They have provided the following information. They graduated from university four years ago and they have good jobs, but neither of them has paid much attention to their finances. Lucy works for an accounting firm and is now making $68,000 a year in her position. Ricky works in technology, got his master degree right after college, and is making $78,000 a year. They have a total of $14,000 in their checking account at ATB. Lucy inherited $26,000 from her grand-mother a year ago. She has the check in her drawer in the home office, and she has not deposited it in the bank yet. Lucy carries $5,000 on her credit card, which charges an APR of 21%. Ricky has a credit card that charges an APR of 19% and he carries a balance of $2,500. They pay the minimum payment each month on their credit cards, the amount specified on the credit card statements. They purchased a condo 4 years ago, and have estimated they have $150,000 equity. They are considering selling their condo, and using the equity as a down payment to buy a larger home. They have qualified for one that has a purchase price of $550,000. They are planning for a 5-year term and 20 year amortization period, and are approved for a mortgage rate of 2.2% compounded semi-annually. Lucy is pregnant and they would like to set aside money for their child' education. They are considering two different scenarios: a) How much should they set aside today to have $60,000 18 years from now, assuming they can earn 5% per year compounded seminannually on their investme b) How much should they set aside each year for the next 18 years starting now, to have $60,000 in 18 years, assuming an interest rate of 4.75% compounded quarterly? 5 marks 2) They would like to know how much they will have in 30 years if they leave their current savings (the money they have in the bank and Lucy's inheritance) in a checking account earning 1% per year versus investing and getting an average return of 6% per year. N= PMT = 1% per year: 6% per year: Rate = PV = N= Rate = PMT= PV = 3) How long would it take to pay off their credit cards if they each were to pay $150 each month and not charge anything further on it? *hint: use the nper function divided by 12 to get the #years 5 marks Lucy: EAR: # Years: Ricky: EAR: # Years: 4) For the mortgage on a new home: *Copy the loan amortization template onto the next worksheet and reference the correct cells from there to answer the following questions. 10 marks i) What is the bi-weekly mortgage payment amount? ii) How much interest is paid after the first 5 years? iii) How much principal is paid back after the first 5 years