After graduating university and moving to a new city, Jane has finally realized she is significantly in debt. In fact, she owes money to various creditors (7, to be exact). Below is a summarized list of her debts along with their respective interest rates and current balances, as of today. Interest rates are given in APR, but interest accrues monthly on each loan.

Janes bank recently offered her the opportunity to consolidate all her debt in one central location. The interest rate offered is 3.0% APR, amortized over a 20-year period. The bank stipulates that ALL the debt must be consolidated into this account. Assuming that she can indeed payoff all her debts without penalty, how much interest would Jane save if she consolidated all the loans today? Now, assume that Jane has bad credit, and the bank rescinded the offer of 3.0% APR but instead offered a 12% APR, is it still worth it? State clearly any assumption you make, and in particular be very clear about the ammorization term and monthly payments. (I suggest you select the same as the loan.)

DEBT Loan #1 (Department Store) Loan #2 (Car Loan) Loan #3 (Credit Card) Loan #4 (owed to LASIK). Loan #5 (Student Loan) Loan #6 (Another Card) Loan #7 (Flight Centre) TOTAL OWED BALANCE $8,400 $12,150 $3,500 $9,400 $44,510 $1,500 $5,540 $85,000 INTEREST RATE 29.50% 7.00% 19.00% 10.50% 11.50% 24.00% 8.50%