Annual take-home pay: $80,000 Monthly rent: $3,500 MBNA Credit Card (24% APR): $24,900 Time left 0:48:21 Minimum monthly payment on MBNA Credit Card: $249 Student Loan Balance (8% APR): $29,000 Monthly student loan payments: $650 Car Loans (9% APR): $39,000 (outstanding Monthly car payments: $1,100 (on two cars) balance on 2 cars) Groceries: $590 Checking account Mr Smith balance: $11,000 Checking achount Mrs Smith balance: $10,000 Monthly transit passes (two): $250 Monthly Utilities: $169 RRSP (earning 6%): $128,000 Other monthly bills: $410 Mutual Funds (earning 8%): $23,000 Required: 1) Calculate the liquidity ratio to two decimal points. (8 Points) 2) Explain what the liquidity ratio shows for the Smiths and explain whether this is of concern to them? (12 points)