Type of Consumer Debt Creditor Financial Planning Exercise 2 Calculating debt safety ratio Use Worksheet 7.1. Every 4 months, Leo Perez takes an inventory of the consumer debts he has outstanding. His latest tally shows that he still owes $4,500 on a home improvement loan (monthly payments of $400); he is making $125 monthly payments on a personal loan with a remaining balance of $800; he has a $1,000, secured single-payment loan that's due late next year; he has a $85,000 home mortgage on which he's making $950 monthly payments; he still owes $8,800 on a new car loan (monthly payments of $450); and he has a $770 balance on his Mastercard (minimum payment of $40), a $80 balance on his Shell credit card (balance due in 30 days), and a $1,600 balance on a personal line of credit ($90 monthly payments). a. Use Worksheet 7.1 to prepare an inventory of Leo's consumer debt. Auto loans. Personal installment loans Home improvement loan Single-payment loans Credit cards (retail charge cards, bank cards, T&E cards, etc.) Personal line of credit Totals Mastercard Shell Currently Monthly Payment Latest Balance Due IIIII b. Find his debt safety ratio, given that his take-home pay is $2,000 per month. Round the answer to 1 decimal place. c. Would you consider this ratio to be good or bad? -Select- Select Good Bad