Calculate the proposed consolidation loan $($including car loan and all credit cards$)$ using a rate of $10\%,$ calculate the payment for a $24-$month term, a $36-$month term and a $48-$month term.

Calculate the payment for a variable rate loan at prime plus $3\%$ over the same time period. Prime $=7\mathrm{.}2\%.$

Greenwood Case

Maya and Liam Greenwood's Story

Maya Greenwood, $28,$ is a vibrant freelance graphic designer known for her creativity and dedication. She completed her degree in Fine Arts three years ago and has since built a modest but steady clientele in the bustling city of Edmonton. Liam Greenwood, $30,$ is a junior software developer at a rising tech startup. He's been passionate about technology since childhood and completed his Computer Science degree five years ago.

The couple met during their university years at the U of A$,$ and bonded over their shared love for the arts and technology. They got married shortly after Maya's graduation and decided to start their life together in a Condo in the heart of Edmonton, a city that offered them both professional opportunities and a lively cultural scene.

Two years ago, they took a significant step in their life journey by purchasing a Condo. The real estate market was competitive, but they managed to find a place they loved, valued at $$300,000.$ This was their dream home, a symbol of their hard work and aspirations.

However, life threw them a curveball. Maya developed a rare condition that required specialized treatment not fully covered by their insurance. This unforeseen medical journey led to substantial out$-$of$-$pocket expenses, straining their finances.

Amid these challenges, the Greenwoods have had to rely on their credit cards to manage both living expenses and medical bills. This reliance has led to a growing credit card debt, further complicating their financial stability. They also have ongoing commitments, such as their mortgage and car loan, which they have managed to maintain so far, but with increasing difficulty.

Now, the Greenwoods find themselves at a crossroads, seeking ways to navigate their financial challenges while maintaining the life they have built together. They are hopeful but aware that they need to make informed financial decisions to secure their future.

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Employment Information

Maya Greenwood Freelance Graphic Designer

$•$ Self$-$employed, operating under the business name "Creative Visions." Maya works from her home studio in Edmonton and collaborates with various clients, primarily small businesses, and startups in the creative sector. Maya has done this work for $6$ years now.

$•$ Maya's income varies based on her project workload. Thankfully given her health conditions she can work from home. On average, she earns about $$4,400$ per month. She has provided Notice of Assessments for you to verify.

Liam Greenwood Junior Software Developer

$•$ Fulltime employment at TechSpark Solutions, a tech startup specializing in innovative software solutions for businesses. The company is in downtown Edmonton. Liam has worked there for $5$ yrs$.$ 

$•$ Liam earns a monthly salary of $$6,000.$ He has provided his most recent paystub. b Compare and contrast fixed vs$.$ variable rate loans. Which do you recommend for this customer?

Financial Situation

Assets:

Joint RBC Chequing Account: $$3000$

Liam RBC RRSP $–$ $$15,000$

Maya RBC Non$-$Reg Mutual Funds $-$ $$8000$ 

Condo $–300,000$

Vehicles Owned:

$2020$ Chevy GM Sierra: Valued at $$27000$

$2019$ Honda Civic: Valued at $$20,000$

Liabilities:

Credit Cards:

AMEX $-5000$ balance with a $$5000$ limit

RBC VISA $-5000$ balance with a $$5000$ limit

MBNA MCD$-7500$ balance with a $$7500$ limit

Loans:

RBC Truck loan $-$ $$17786$ balance monthly payments of $$590$

RBC MORTGAGE $$280,000$ balance with monthly payments of $$1950*$recently increased due to prime rate change

Property taxes are $$250,$ Condo Fees are $$225,$ use $$125$ for heat.