Please help me with this case study, I need answers to questions 1- 10

Cindy Wilson Cindy Wilson was referred to you by one of your best clients. She is stressed about her financial situation and is seeking financial advice for the first time. Over the past year, she has incurred several major expenses that she did not expect to pay. Last year, she faced major medical and personal expenses and used her credit cards to cover the majority of these expenses; however, she is now approaching the limits on these cards. She is uncomfortable with her current debt load, and worries that she will not be able to cover future expenses if additional setbacks arise. She would like to know how to best go about restructuring and reducing her debt in the coming year to improve her financial outlook. Personal Data & Background Information Cindy Wilson Age: 32 Health: Excellent Occupation: Nurse Marital Status: Divorced Children: One child, Logan, Age 8 Relevant Financial Information CINDY WILSON Estimated Monthly Cash Flow Statement 12/01 through 12/31 Income Salary1 Child Support Expenses Roth IRA Contribution Mortgage (PITI) Car Payment Food Utilities Car Operation (gas, oil, repairs) Life Insurance Auto Insurance Child Care Clothing Entertainment Gifts Income Taxes Credit Card Payment Medical Bill Payment Student Loan Payment . Works three, twelve hour shifts a week at $22 per hour, 48 weeks per year. $3,168 $450 $300 $892 $316 $220 $200 $110 $30 $110 $310 $155 $120 $40 $315 $128 $120 $120 CINDY WILSON Statement of Financial Position As of 12/31 Assets Checking Account Savings Account Primary Residence Roth IRA Personal Property Car TOTAL ASSETS Liabilities Primary Residence Auto Loan Student Loan Credit Cards Discover Card1 Visa Card2 Community Medical Center3 TOTAL LIABILITIES NET WORTH 1. 14.99% APR; minimum monthly payment of $39 2. 18% APR; minimum monthly payment of $89 3. Remaining medical expenses to be paid; agrees to pay $120 per month until balance is paid. No interest charged. $550 $2,300 $135,000 $55,200 $35,000 $15,300 $243,350 $92,000 $16,000 $4,900 $3,500 $5,600 $1,200 $117,300 $126,050 Client Goals 1. Create a debt reduction plan to pay down credit card balances over a 2-year period 2. Evaluate the most productive way to restructure financial resources to improve financial situation and/or monthly discretionary income 3. Prioritize debt payments to determine which debts she should pay down first 4. Determine whether a home equity loan or line of credit is a good option to consider for help with debt repayment 5. Begin building her savings account to protect her in the future if another financial strain occurs Questions 1. Cindy is unsure how a financial planner can help her improve her financial situation. In your first meeting, you explain how you will help her using the financial planning process. In order, from start to finish, how will you help Cindy? I. Implement and execute plan II. Gather data and background information III. Develop financial plan IV. Establish financial goals V. Monitor and measure performance a) IV, II, III, I, V b) II, IV, III, I, V c) III, IV, II, I, V d) IV, II, III, V, I 2. How much additional discretionary income does Cindy have remaining at the end of each month that could be applied to medical and credit card payments? a) -$318 b) $132 c) $248 d) $380 3. How much could Cindy pay each month if she were to combine her monthly discretionary cash flow with what she is currently paying toward medical bills and credit cards? a) $132 b) $248 c) $380 d) $512 4. Which of the following are examples of Cindy's unsecured debt(s)? I. Credit Cards II. Home Mortgage III. Medical Bills IV. Student Loan V. Car Loan a) I, III b) II, V c) I, III, V d) I, III, IV 5. Cindy wants to pay off her VISA card balance within one year from today. To accomplish this goal, what will be her monthly payment, rounded to the nearest dollar, to accomplish this goal? a) $89 b) $320 c) $505 d) $513 e) 6. Not enough information to determine answer Cindy has indicated that she is willing to restructure her income and expenses to devote more income to paying off her credit cards. You have recommended that she increase the amount being paid towards her Discover and VISA cards by the following amounts: Discover $100 VISA $160 Using the debt to income ratio (with the increased credit card payments), which statement is correct? a) Cindy's debt to income ratio is less than 8%; this illustrates that Cindy's financial leverage is less than average if an emergency should arise. b) Cindy's debt to income ratio is less than 10%; this illustrates that Cindy's financial leverage is better than average financial leverage if an emergency should arise. c) Cindy's debt to income ratio is 25%; this illustrates that Cindy has less than average financial leverage if an emergency should arise. d) Cindy's debt to income ratio is 20%; this illustrates that Cindy has better than average financial leverage if an emergency should arise. 7. Cindy is willing to consider using a home equity loan to pay off her credit cards. All of the following are advantages of this strategy EXCEPT: a) Cindy could pay less in total interest if amortized over a 5-year period. b) The interest could be tax deductible if deductions are itemized on her tax return. c) Cindy could improve her debt to income ratio giving her more financial leverage in the future if an emergency should arise. d) Cindy is securing her unsecured debt, which gives her more financial leverage when paying the monthly payments. 8. According to your best estimate, how much money would Cindy save per month if she transferred her credit card debt to a home equity loan? She is assuming the home equity loan would be amortized over a five year period with a fixed interest rate of 7%, compared to paying both her credit cards down over a five year period at the current APR. a) $45 b) $40 c) $35 d) $20 e) 9. Not enough information to determine answer Cindy's purse was stolen out of her car. She immediately calls her credit card companies to report the incident, even though no charges were made at the time. Three days later, she notices the following unauthorized transactions were charged. Discover Card $344 Visa Card $28 How much will Cindy be responsible for paying? a) $0 b) $100 c) $128 d) $380 10. If Cindy made a lump sum payment of $1000 from her savings today toward the balance of her VISA card, approximately how much will she save in interest over a 1-year period, if no other payments are made? a) $200 b) $500 c) $800 d) $1,100