If all 5 could be answered i would greatly appreciate it!
1. Isaac Wright has a monthly take-home pay of S1,195; he makes payments of $400 a month on his outstanding consumer credit (excluding the mortgage on his home). How would you characterize Isaac's debt burden? a. Above or equals maximum suggested limit b. Low c. Lower than manageable, but not low d. Lower than maximum but higher than manageable 2. What if his take-home pay was $890 a month and he had monthly credit payments of S150? a. Above or equals maximum suggested limit b. above c. Lower than manageable, but not low d. Lower than maximum but higher than manageable 3. Use Worksheet 6.1. (pg 224) Alyssa Clark is evaluating her debt safety ratio. Her monthly take-home pay is $3.100. Each month, she pays $280 for an auto loan, $160 on a personal line of credit, $85 on a department store charge card, and $100 on her bank credit card. Complete Worksheet 6.1 by listing Alyssa's outstanding debts. a. Calculate her debt safety ratio. Round the answer to 1 decimal place. Enter debt safety ratio as a percentage. b. Given her current take-home pay, what is the maximum amount of monthly debt payments that Alyssa can have if she wants her debt safety ratio to be 17.5%? Round the answer to the nearest dollar. c. Given her current monthly debt payment load, what would Alyssa's take-home pay have to be if she wanted a 17.5% debt safety ratio? Round the answer to the nearest dollar. 4. Ryan Gray, a student at State College, has a balance of S420 on his retail charge card; if the store levies a finance charge of 24% per year, how much monthly interest will be added to his account? a. Calculate her debt safety ratio. Round the answer to 1 decimal place. Enter debt safety ratio as a percentage. b. Given her current take-home pay, what is the maximum amount of monthly debt payments that Alyssa can have if she wants her debt safety ratio to be 17.5%? Round the answer to the nearest dollar. c. Given her current monthly debt payment load, what would Alyssa's take-home pay have to be if she wanted a 17.5% debt safety ratio? Round the answer to the nearest dollar. 4. Ryan Gray, a student at State College, has a balance of $420 on his retail charge card; if the store levies a finance charge of 24% per year, how much monthly interest will be added to his account? 5. Parker Young recently received his monthly MasterCard bill for the period June 1-30, 2017, and wants to verify the monthly finance charge calculation, which is assessed at a rate of 15% per year and based on ADBs, including new purchases. His outstanding balance, purchases, and payments are as follows: Previous balance 260 Purchases Payments e 4 $141 pune 21 June 12 June 20 139 une 26 a. What is his ADB for the period? (Use a table like the one in Exhibit 6.8 for your calculations.) Do not round intermediate calculations. b. What is his finance charge for the period? (Use a table like the one in Exhibit 6.8 for your calculations.)
