FNCE $2130\_$ Finance Lab Assignment

Lucy Keller Debt Elimination

Lucy Keller is $27$ years old. She graduated from university a couple of years ago. She has a good job earning about $$69,000.$ She has been dating Marcus for about a year now. While she is not sure where her relationship with Marcus will go she definitely wants to get married and start a family before she is $30$ years old. One of Lucy$$s concerns is the amount of debt she has. She would really like to pay off her debt before she gets married as she does not want to bring the debt into a marriage. She has come to you for help in developing a strategy for eliminating her debt.

You have a debt elimination process that you know from experience will work. It is a six$-$step process and you begin by sharing with Lucy the six steps;

Please write in the Six$-$step Debt Elimination Process we covered in class.

Lucy reviews the steps and indicates she would like to give it a try. She shares her debts with you; Credit card, balance is $$6,200,$ minimum payment is $$500,$ interest rate is $5\%.$ Car loan, balance is $$8,100,$ payment is $$469,$ and interest rate is $1\%.$ Student Loan, balance is $$17,000,$ payment if $$400,$ interest rate is $7\%.$ Education Line of Credit, balance is $$20,000,$ payment is $$500,$ and interest rate is $6\mathrm{.}5\%.$

Per step $3$ in the Debt Elimination Process, find the remaining time for Lucy$$s debts.

Debt

Interest Rate

Monthly Rate

Balance

Monthly Payment

Remaining Months

Total Monthly Payments

This is the part $1$ of the questions, please fill in the charts of the questions in the attached image