Esposito Practice Case

Sal and Maria Esposito, a couple in their mid$-$thirties, reside in the vibrant city of Edmonton, Alberta. Sal, a dedicated mechanical engineer, has work at EnergyTech for $12$ years now, and earns an annual salary of $$95,000.$ Maria, a passionate part$-$time teacher, for the Edmonton Public Schools for the last $8$ years. She went part$-$time $5$ years ago when she became a mother. She does plan on returning to full$-$time work next September. Maria contributes to the family's income with her annual earnings of $$45,000.$ Together, they navigate the joys and challenges of raising their two young children.

The Esposito$$s financial situation took a turn when unexpected expenses and the cost of living stretched their budget thin. They started relying on credit cards to bridge gaps.

Recently, the couple realized the severity of their situation when they tallied their debts. The mounting pressure of high$-$interest rates and multiple debt payments each month led them to come to NAITLAB Financial regain control of their finances.

During your conversation with the clients, they provide the following information to you:

Assets:

Maria$$s diamond bracelet $$3000$

Sal$$s Antique $1966$ Mustang $$38,000$

Vehicles Owned:

$2017$ Toyota Highlander $$25,000$

$2023$ Chev Silverado $$45,000$

Home: $450,000$

Liabilities:

TD MORTGAGE $305,000$ Monthly Payments $$1950$

TD VISA $$ Owing $12,000$ Limit $$15,000$

BMO MCD $$ Owing $$9,000$ Limit $$10,000$

TD loan Balance $$15000$ owing with payments of $695/$month

GMC Finance lease $$ monthly payment $$650$

Refer to the Credit Bureau to confirm the information provided is correct.

Identification

Name: Esposito, Sal

Current Address: $331104584$ Avenue Edmonton, AB T$6$K $0$R$5$

Date of Birth: $03/05/86$ Age: $37$

S $$ Esposito, Maria

Beacon:$672$

Inquiries

Date Member No Member Name Telephone

$06/02/2021001$BB$98852$ ROYAL BANK $(800)760-2829$

$09/02/2023001$BB$45832$ BANK OF

MONTREAL

$(800)783-5809$

Employment

Current Employer: Mechanical Engineer EnergyTech $11/06/2011$

Engineering Technician Natural Gas Co

ES $$ EPSB

Summary

Pub Records Trade Oldest$-$Newest Total High Credit Rating

Trade Information

Member Trades:

Bus$/$ID Code pmt Rptd Opnd HC Bal Rt $30/60/90$

TD $69503/202306/202022,20015,000$ I$1010000$

BMO

Master Card

$03/202306/2018100009000$ R$1010000$

TD

Mortgage

$8/202007/2020350000305000$ M$1000000$

GMAC Fin $65003/202306/202048,32023,999$ I$1010000$

TD Visa $03/202306/20181500000$ R$1010000$

End of report

FN $03-01587950-23-854-$UN $089765112402/05/2024$

Identification

Name: Esposito, Maria

Current Address: $331104584$ Avenue Edmonton, AB T$6$K $0$R$5$

Date of Birth: $11/30/88$ Age: $35$

S $$ Esposito, Sal

Beacon:$605$

Inquiries

Date Member No Member Name Telephone

$12/02/2022122$BB$98852$ ROYAL BANK $(800)760-2829$

$10/02/202212$CGB$45832$ MBNA $(800)563-5569$

$11/02/2022141$BBG$44832$ Costco $(800)452-5458$

$11/02/2022001$ll$35832$ Servus CU $(780)783-1256$

$04/03/202312001$BB$445$ Citibank $(800)483-9584$

$05/03/2023153$BBfR$4562$ Citizens Bank $(800)683-6587$

$01/03/2023163$L$5644$ CU MCCC $(800)583-8000$

$02/03/20231232125522$ BMO $(416)555-5001$

$05/03/2023125897$K Royal bank Visa $(416)756-5658$

$02/03/202365844$LKK Wells Fargo $(405)783-1239$

$04/03/2023001$HHH$4587$ Payday Loans $(780)663-5809$

Employment

Current Employer: CDC Insurance $05/01/2020$

$2018$ prior Student NAIT

ES $$ Natural Gas

Summary

Pub Records Trade Oldest$-$Newest Total High Credit Rating

Trade Information

Member Trades:

Bus$/$ID Code pmt Rptd Opnd HC Bal Rt $30/60/90$

Bay Card Account

closed

$03/201906/201802599$ R$3050506$

$1.$ Calculate the payment of the loan of $$20,000$ interest Prime $+2\mathrm{.}0\%$ and the term is $4$ years $48$ months. $($assume prime is $7\mathrm{.}2\%)$

$5.$ Calculate GDS and TDS $($before the new loan payment and after including the new loan payment$).$ Assume the following: heating is $$150,$ taxes are $$250$ Show your work here.TDS before the new loan payment

TDS with the new loan payment

$6.$ Are these ratios acceptable? Why or why not?

Calculation for Sal's Monthly Income:

$$ Regular earnings: $$45\mathrm{.}6780$ hours $2$ weeks $=$ $$7,330\mathrm{.}72$

$$ Deductions: $$962\mathrm{.}23$

$$ Net pay: $$7,330\mathrm{.}72-$ $$962\mathrm{.}23=$ $$6,368\mathrm{.}49($monthly$)$

Calculation for Maria's Monthly Income:

$$ Regular earnings: $$34\mathrm{.}2075$ hours $4$ weeks $=$ $$10,260$

$$ Deductions: $$758\mathrm{.}00$

$$ Net pay: $$10,260-$ $$758\mathrm{.}00=$ $$9,502\mathrm{.}00($monthly$)$