Sid and Maha Jenkins have approached you for a consolidation loan. Sid started a new job three months ago with a small but successful consulting firm, Cisco consulting. Cisco consulting has been in business for the past six years.

Sid is 27 and Maha is 26. They are renting a nice apartment for $1,200 a month where they have lived for the past three years, they have made no plans to buy a home at this time.

Sid has just completed his Degree in Computer Engineering. His salary as a software developer is $50,000. He has obtained honors standing in all hiscourses.Whileattending College, he workedpart-timeat a Call Centre for $14 hour for the past four years. He worked about 14 hours a week while he was in school; in the spring and summer, he worked the equivalent of full time or 40 hours a week.

Maha has worked as a supervisor in receivables for Mckinnon Sports and Rec store for the past two and a half years. Her present salary is $38,000.She has her Diploma from NAIT and has just earned her Credit Designation with the Credit Institute which will entitle her to an increase in salary.

Sid and Maha obtained a loan for $25,000 for a 2015 Honda Civic last year from a competitor with an arrangement with a dealer. The loan's rate is at 9.0% with a48-monthterm.They do not know the exact outstandingbalancebut tellyou therearethirty-sixmonths remaining in the term.The Civic's book value is $22,000. You will need to calculate the actual loan balance remaining and payments.

They also have a 2009 Ford Escape.Its book value is only$1,000.

Maha has $5,000 in an RRSP in Equity Mutual Funds with your bank.

Their balance in the chequing account with you is $1,000. There has been one NSF in the past year.

Sid has a student line of credit at $15,000 which is also at your bank. The rate is prime + 2% and payments are $175.

The couple's cards are at their maximum.They have a MasterCard with a balance of $3,500, your Visa which has a balance of $2,000, a Sears card owing $2,000, and a Bay card at $1,000.The Credit bureau shows current ratings are all R1;however, previous ratings include twoR2s and one R3 in the last year. There is also a collection for an unpaid utility three years ago which has since been settled. Sid and Maha can provide proof of payment.

Maha has $6,000 in jewelry and Sid has $5,000 in camera equipment.

Calculate the Jenkins's net worth:

Analyze the Jenkins's request for a consolidation loan for all their debt, including the car. Do not include their student loan in this request.Use a fixed rate of 14.50 % and a 48-month term.

Calculate the Jenkins TDS before the loan request:Calculate the Jenkins GDS before the loan request:Calculate the Jenkins TDS after the loan request:What other recommendationscould you make to the Jenkins given their current financial situation? (i.e financial planning advice)To ensure that your debt consolidation file will be compliant, what documentation is required for this loan to be considered complete?Rating the 5 C 's of CreditRate each of the C's as they apply to this case.For each C identified below check the box and then provides a brief explanation for your rating.(5 marks) For this section answer for Character only.1. Character(Satisfactory/Unsatisfactory) Be sure to justify your positionFinancial Capacity -(2 marks)Satisfactory/UnsatisfactoryCapital (Net Worth) -(2 marks)Satisfactory/UnsatisfactoryCollateral - (2 marks)Credit -(2 marks)Credit Decision1. What is your final decision on the loan request?Check onlyoneoptionbelow.(1 mark)Approve/Decline/ModifiedIf approved or modified, you must show the Principal amount, the term and the interest rate. (1 mark)

2.Justify your decision.Summarizeof the 5Cs and make any recommendations