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Lina has provided you with the following information to help prepare for the meeting with the bank on July 1, 2020. She is looking to
Lina has provided you with the following information to help prepare for the meeting with the bank on July 1, 2020. She is looking to buy a home and knows that the bank will be looking at several ratios to determine how comfortable they are in her ability in meeting loan repayments from the income she earns. Item Savings account (monthly savings of $500 over last 12 months) Furniture Car Monthly VISA payment Disposable income Registered Retirement Savings Plan (RRSP) Monthly rent Weekly food purchases Other monthly expenses Tax-Free Savings Account (TFSA) Value or amounts as of July 1, 2020 $6,000 $8,750 $20,500 $1,200 $89,200 $49,550 $2,600 $100 $2,700 $5,000 a) What is her Savings Ratio? (.5 mark) Calculation: (.5 mark)
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