Continuing Case: Tarek's Financial Journey Vehile insurance Let's catch up with Tarek. Tarek has previously developed the follow- 200 Food and eating out Car payment 290 ing budget and balance sheet. 395 Student loans 298 Tarek's Personal Monthly Budget Sports and hobbies 240 Phone and household 100 Wages $3,900 Retirement 156 Interest 90 Vacations 300 Credit cards Income $3,990 275 Taxes 883 $3,987 Expenses Rent 850 Surplus/Deficit Inst Ans Tarek's Balance Sheet Assets $ 350 Checking 1,100 Savings 11,000 Automobile 3,750 Motorcycle 800 Furnishings 2,100 Clothes 900 Other household 2,500 Sports equipment 750 Collections 19,000 401(k) $42,250 Total Assets Liabilities $ 3,500 Credit cards 25,900 Student loans 3,000 Car loans $32,400 Total Liabilities Instructions Use Tarek's budget and balance sheet information to answerthe follow- ing questions. a. What is Tarek's budgeted income surplus? b. What is his budgeted savings ratio? How does this compare with the recommended benchmark? c. What is Tarek's total debt-to-income ratio? How is he doing com- pared to the recommended benchmark? What can he do to im- prove his situation? d. Based on a month having 4 weeks and assuming Tarek works 40 hours per week, what is his hourly wage rate? How does this compare to the national minimum wage? e. Assume that Tarek paid $400 for his collections. If he sold the col- lections today for market value and paid no sales fee or com- mission, what will be his total capital gain? What is this amount in terms of a percentage