A member of the Math Department, , is thinking of calling it a career after this school year. He's worried about whether he will be able to survive comfortably on his pension if he retires, however. Here are this teacher's debts... Personal Loan: $17,000 borrowed at 2% APR for 3 years. Mortgage: $2350/month Property Tax: $9500/year Homeowners' Insurance: $1600/semiannual Electricity: $1700/year Natural Gas: $1700/year Cell phones for family: $350/month Car Lease: $250/month Car insurance: $1500/semiannual Cable/WiFi: $185/month Credit card minimums: $50/month Home equity line of credit: $400/month Water: $150/quarter Including college classes he teaches in the evening, his salary is $160,000/year. Additionally, his wife works and earns $42,000/year. Your job: 1. Calculate a D/I ratio for this teacher and his wife, correct to the nearest tenth of a percent. Comment on their current financial health. 2. If the teacher retires, his wife will as well. This will leave them with a $65,000/year pension, plus $30,000/year in extra income from continuing to teach some college classes at night. Use this information to calculate a D/I ratio if they retire, and comment on their health if they were to do this. 3. In 1 year, the home equity line of credit will disappear. Calculate a new D/I ratio if the teacher and his wife retired at this time. 4. In 2 years, the mortgage will be paid off. Calculate a new D/I ratio if the teacher and his wife retired at this time. 5. What financial advice would you give this teacher?