Need help with this problem. Thanks.

at her trust com pany, for a three-year loan to buy a car. She wants $7,000 at of 1% per month. with the youngest about to start grade 1 in a few days year as an accountant for a factory. He is in the fourth She wants $7,000 at the current 6. Marge Ciccone has applied to you, the assistant manager She and her husband, Lou, have four children Lou earns $32,000 year of the certified s th management accountants (CMA) program, and expects to finish in lcrtified Marge wants the car so that she can start working outside th again, after being out of the labour force for almost 10 years. Sh two years. can work that is just a commission salesperson for a small food processing compan starting to expand its lines. Up to now, it had concentrated on restau caterers; now it wants to sell to small speciality food area. Marge has worked in the food business as both a food store cl sausage stuffer, and she feels she understands the business well eno successfully. She speaks French, Italian, and English fluently. retailers in the Mont erk an ugh to handle the restaurant She talked to the two salesmen who currently clientele, and discovered they make "about $35-40,000" before automobil expenses, which they must pay themselves. She would sell to the proposed new target market, so she wouldn't be in competition with them. They warned her that it would take at least a few months to make any reasonable level of sales, and several years to build up a good clientele with repeat business. She cannot work a full day for at least two or three years because she still wants to be home when the children aren't in school. She figures that gives her about five hours on the road, compared with their eight hours, but she can do some of the paperwork and telephoning from home. Marge and Lou own their own house in a pleasant suburb of Montreal. The mortgage payments of $748 per month run for four years to renewal, and the mortgage has 1 p.a. and $180 per month on another car loan that has two years to run. Lou take-home pay is $25,000. They put $1,000 into an RRSP for Lou in 1994 (in several instalments), the first such deposit they have made. They keep $1,000 in a savings account for contingencies, and they have saved up another $3,500, which Marge plans to use for the rest of the $10,500 purchase price of the car. 0 years after that. They pay property tax of about $1,200 (a) What advice would you give her? (b) Will you grant the loan