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Brian and Marie Peterson You are a senior lender in your branch. A new employee who is learning to lend has approached you with his credit deal that you need to review. You are to note any errors and provide the trainee with the correct information. The customer scenario is listed below, use this to assist you in making adjustments and or corrections to the credit deal. Brian and Marie Peterson are looking to consolidate their credit card debts as they seem to be out of control. Brian has been working for the last 5 years at Ikea as a store manager after graduating from his BBA at NAIT Brian recently received a pay increase and had asked his employer to provide him with a salary letter to show his increase, this is included in the fie. Marie works at City Ford as a sales representative for the last 3 years she receives a base pay along with bonuses she says she grosses 120,000 annually. She mumbled that this year has not been very good as people aren't buying as many cars that is why she brought her Nolice of Assessments from previous years to show you what she has made in the past. It is only a matter of time before things turn around she said See their net worth statement for balances on credit cards and mortgage and loan payments. This is the information came from the credit bureau Equitax shows he has never missed a truck loan payment and confirms a rating of R1, Marie's BMW loan is showing R1. Ratings on their credit cards from Sears, Visa are R2, they do however have a MasterCard with a R1 rating Both husband and wife like the finer things in life as noted in their assets listed on the net worth statements. All credit cards are continuously at the maximum credit Himits They have a joint unsecured line of credit at Scotiabank which they used to consolidate their debt once before, its current rating is listed at R1 but they are only able to make minimum payments. There is a unsecured line of credit at RBC that they used for home renos last year they have only been making minimum payments as well The Petersons are very concemed about their current situation and are feeling overwhelmed Documentation provided INCOME VERIFICATION: Notice of Assessment for Maria Peterson Tax year 2019 Line Description Amount 150 Total income Deductions from total income 119,575 18.785 238 Net Income Deductions from net income 102790 15500 Documentation provided INCOME VERIFICATION: Notice of Assessment for Mana Peterson Tax year 2019 Linie Description Amount 150 Total income Deductions from total income 119.575 16,785 102790 Net Income 238 Deductions from net income 200 Table Income 15500 87290 350 Total federal non-refundable tax credits 3472 6150 Toul Alberta non-refundable tax credits 6120 420 Net Federal Tax 0.00 421 CPP contributions 420750 435 Total payable 437 Total Income Tax Deducted 4.207.50 0.328.75 5.75.82 DR 482 Total credits Total payable minus Total credits) Penaties Arrears interest Balance Due from this assessment Balance due OR DR 10318 0.00 0.00 DR OR 0.00 1123.00 Notice of Assessment for Maria Peterson for Tax year 2020 Amount Line Description Total Income 160 Deductions from total income 8 121,472 17,825 238 Net Income Deductions from net income 103.847 11500 260 Taxable income 350 Total federal non-refundable tax credits ||02347 4472 6150 Total Alberta non-refundable tax credits 3788 420 Net Federal Tax 0.00 421 CPP contributions 4.207 50 435 Total payable 4.207.50 437 Total Income Tax Deducted 17.325.75 14,175.62 DR DR 482 Total credits Total payable minus Total credits) Penalties Arrears interest Balance Due from this assessment Balance due 3188 10.00 0.00 DR OR DR 10.00 31.88 James Lykey Human Resources Manager McDonalds Restaurants of Canada 12354 St and 23 Ave Edmonton, Alberta T6G 2R3 Nov 25 2021 James Lykey Human Resources Manager McDonalds Restaurants of Canada 12354 Stand 23 Ave Edmonton, Alberta TOG 2R3 Nov 25 2021 To Whom This May Concem This letter is to confirm that Brian Peterson is an employee of the McDonals Restaurants of Canada tras en working time position since August 23th 2012. His annual salary is 85.000.00 per annum If there are any questions or concems, please feel free to call me at 780 4923116 Thank you James Lykey hances Payment 27 00 03405 46 Networth statement completed by lender Assets Balancesibilities House 185000 Moto 2017 GMAC Heavy Duty 50000 Truck loan BMW 2013 18000 MW Dont Saving 5000 Sea Wayne Grey Hochwycandoned 25000 M Damond saling with appraisal 30000 Maserad Joonitica 15.075 32 17 12 SO 178 ood 001 10000 754 15000 150 Scoaline RSC Unsecured ine 1275 3029 Total Assets 400000 Total Liabilities H0402210 NET WORTH 85077.14 Mndistes debt to be consolidated b) The trainee has calculated the new loan payment as: PIY=12 C/Y-2 1/Y=7% N-60 FV-0 PV=69275,00 PMT= 1368.46 Is this correct? If not correct indicate what the correct TDS is: (1 MARK) Q HE Equation A- A-T BIUSX, X Styles Font Size Words: 0 c) Explain to the lender why is calculating debt servicing ratios are critical:(3 MARKS) Q: HE A. A-BIUS X, X SER con Styles Font Size Brian and Marie Peterson You are a senior lender in your branch. A new employee who is learning to lend has approached you with his credit deal that you need to review. You are to note any errors and provide the trainee with the correct information. The customer scenario is listed below, use this to assist you in making adjustments and or corrections to the credit deal. Brian and Marie Peterson are looking to consolidate their credit card debts as they seem to be out of control. Brian has been working for the last 5 years at Ikea as a store manager after graduating from his BBA at NAIT Brian recently received a pay increase and had asked his employer to provide him with a salary letter to show his increase, this is included in the fie. Marie works at City Ford as a sales representative for the last 3 years she receives a base pay along with bonuses she says she grosses 120,000 annually. She mumbled that this year has not been very good as people aren't buying as many cars that is why she brought her Nolice of Assessments from previous years to show you what she has made in the past. It is only a matter of time before things turn around she said See their net worth statement for balances on credit cards and mortgage and loan payments. This is the information came from the credit bureau Equitax shows he has never missed a truck loan payment and confirms a rating of R1, Marie's BMW loan is showing R1. Ratings on their credit cards from Sears, Visa are R2, they do however have a MasterCard with a R1 rating Both husband and wife like the finer things in life as noted in their assets listed on the net worth statements. All credit cards are continuously at the maximum credit Himits They have a joint unsecured line of credit at Scotiabank which they used to consolidate their debt once before, its current rating is listed at R1 but they are only able to make minimum payments. There is a unsecured line of credit at RBC that they used for home renos last year they have only been making minimum payments as well The Petersons are very concemed about their current situation and are feeling overwhelmed Documentation provided INCOME VERIFICATION: Notice of Assessment for Maria Peterson Tax year 2019 Line Description Amount 150 Total income Deductions from total income 119,575 18.785 238 Net Income Deductions from net income 102790 15500 Documentation provided INCOME VERIFICATION: Notice of Assessment for Mana Peterson Tax year 2019 Linie Description Amount 150 Total income Deductions from total income 119.575 16,785 102790 Net Income 238 Deductions from net income 200 Table Income 15500 87290 350 Total federal non-refundable tax credits 3472 6150 Toul Alberta non-refundable tax credits 6120 420 Net Federal Tax 0.00 421 CPP contributions 420750 435 Total payable 437 Total Income Tax Deducted 4.207.50 0.328.75 5.75.82 DR 482 Total credits Total payable minus Total credits) Penaties Arrears interest Balance Due from this assessment Balance due OR DR 10318 0.00 0.00 DR OR 0.00 1123.00 Notice of Assessment for Maria Peterson for Tax year 2020 Amount Line Description Total Income 160 Deductions from total income 8 121,472 17,825 238 Net Income Deductions from net income 103.847 11500 260 Taxable income 350 Total federal non-refundable tax credits ||02347 4472 6150 Total Alberta non-refundable tax credits 3788 420 Net Federal Tax 0.00 421 CPP contributions 4.207 50 435 Total payable 4.207.50 437 Total Income Tax Deducted 17.325.75 14,175.62 DR DR 482 Total credits Total payable minus Total credits) Penalties Arrears interest Balance Due from this assessment Balance due 3188 10.00 0.00 DR OR DR 10.00 31.88 James Lykey Human Resources Manager McDonalds Restaurants of Canada 12354 St and 23 Ave Edmonton, Alberta T6G 2R3 Nov 25 2021 James Lykey Human Resources Manager McDonalds Restaurants of Canada 12354 Stand 23 Ave Edmonton, Alberta TOG 2R3 Nov 25 2021 To Whom This May Concem This letter is to confirm that Brian Peterson is an employee of the McDonals Restaurants of Canada tras en working time position since August 23th 2012. His annual salary is 85.000.00 per annum If there are any questions or concems, please feel free to call me at 780 4923116 Thank you James Lykey hances Payment 27 00 03405 46 Networth statement completed by lender Assets Balancesibilities House 185000 Moto 2017 GMAC Heavy Duty 50000 Truck loan BMW 2013 18000 MW Dont Saving 5000 Sea Wayne Grey Hochwycandoned 25000 M Damond saling with appraisal 30000 Maserad Joonitica 15.075 32 17 12 SO 178 ood 001 10000 754 15000 150 Scoaline RSC Unsecured ine 1275 3029 Total Assets 400000 Total Liabilities H0402210 NET WORTH 85077.14 Mndistes debt to be consolidated b) The trainee has calculated the new loan payment as: PIY=12 C/Y-2 1/Y=7% N-60 FV-0 PV=69275,00 PMT= 1368.46 Is this correct? If not correct indicate what the correct TDS is: (1 MARK) Q HE Equation A- A-T BIUSX, X Styles Font Size Words: 0 c) Explain to the lender why is calculating debt servicing ratios are critical:(3 MARKS) Q: HE A. A-BIUS X, X SER con Styles Font Size