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If you could please guide me in the right direction. Thank you. Use Worksheet 7.1. Every 6 months, Leo Perez takes an inventory of the
If you could please guide me in the right direction. Thank you.
Use Worksheet 7.1. Every 6 months, Leo Perez takes an inventory of the consumer debts he has outstanding. His latest tally shows that he still owes $3,500 on a home improvement loan (monthly payments of $300); he is making $50 monthly payments on a personal loan with a remaining balance of $850; he has a $1,000, secured single-payment loan that's due late next year; he has a $70,000 home mortgage on which he's making $900 monthly payments; he still owes $9,900 on a new car loan (monthly payments of $375); and he has an $850 balance on his Mastercard (minimum payment of $40), a $95 balance on his Shell credit card (balance due in 30 days), and a $1,500 balance on a personal line of credit ($60 monthly payments). a. Use Worksheet 7.1 to prepare an inventory of Leo's consumer debt. Type of Consumer Debt Creditor Latest Balance Due Auto loans Currently Monthly Payment 375 $ 50 $ 300 $ 9,900 850 3,500 $ Personal installment loans Home improvement loan Single-payment loans Credit cards (retail charge cards, bank cards, T&E cards, etc.) Personal line of credit Mastercard Shell $ 60 $ 1,500 Totals b. Find his debt safety ratio, given that his take-home pay is $3,000 per month. Round the answer to 1 decimal place. c. Would you consider this ratio to be good or bad? -Select- AN INVENTORY OF CONSUMER DEBT Date December 20, 2010 Name Current Monthly Payment* Latest Balance Due Creditor Type of Consumer Debt Auto loans $ $ Education loans Personal installment loans 1. Home improvement loan Other installment loans hissinin Single-payment loans Credit cards (retail charge 1. cards, bank cards, T&E cards, etc.) Overdraft protection line Personal line of credit Home equity credit line Loan on life insurance Margin loan from broker Other loans Totals Total monthly payments x 100 => Debt safety ratio = = Monthly take-home pay x 100 = 0.0% *Leave the space blank if there is no monthly payment required on a loan (e.g., as with a single-payment or education loan). Use Worksheet 7.1. Every 6 months, Leo Perez takes an inventory of the consumer debts he has outstanding. His latest tally shows that he still owes $3,500 on a home improvement loan (monthly payments of $300); he is making $50 monthly payments on a personal loan with a remaining balance of $850; he has a $1,000, secured single-payment loan that's due late next year; he has a $70,000 home mortgage on which he's making $900 monthly payments; he still owes $9,900 on a new car loan (monthly payments of $375); and he has an $850 balance on his Mastercard (minimum payment of $40), a $95 balance on his Shell credit card (balance due in 30 days), and a $1,500 balance on a personal line of credit ($60 monthly payments). a. Use Worksheet 7.1 to prepare an inventory of Leo's consumer debt. Type of Consumer Debt Creditor Latest Balance Due Auto loans Currently Monthly Payment 375 $ 50 $ 300 $ 9,900 850 3,500 $ Personal installment loans Home improvement loan Single-payment loans Credit cards (retail charge cards, bank cards, T&E cards, etc.) Personal line of credit Mastercard Shell $ 60 $ 1,500 Totals b. Find his debt safety ratio, given that his take-home pay is $3,000 per month. Round the answer to 1 decimal place. c. Would you consider this ratio to be good or bad? -Select- AN INVENTORY OF CONSUMER DEBT Date December 20, 2010 Name Current Monthly Payment* Latest Balance Due Creditor Type of Consumer Debt Auto loans $ $ Education loans Personal installment loans 1. Home improvement loan Other installment loans hissinin Single-payment loans Credit cards (retail charge 1. cards, bank cards, T&E cards, etc.) Overdraft protection line Personal line of credit Home equity credit line Loan on life insurance Margin loan from broker Other loans Totals Total monthly payments x 100 => Debt safety ratio = = Monthly take-home pay x 100 = 0.0% *Leave the space blank if there is no monthly payment required on a loan (e.g., as with a single-payment or education loan)Step by Step Solution
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