Use Worksheet 7.1. Every 6 months, Leo Perez takes an inventory of the consumer debts he has outstanding. His latest tally shows that he still owes $4,250 on a home improvement loan (monthly payments of $100); he is making $50 monthly payments on a personal loan with a remaining balance of $825; he has a $1,500, secured single- payment loan that's due late next year; he has a $70,000 home mortgage on which he's making $850 monthly payments; he still owes $12,500 on a new car loan (monthly payments of $550); and he has a $1,200 balance on his Mastercard (minimum payment of $50), a $50 balance on his Shell credit card (balance due in 30 days), and a $500 balance on a personal line of credit ($90 monthly payments). a. Use Worksheet 7.1 to prepare an inventory of Leo's consumer debt. Type of Consumer Debt Creditor Currently Monthly Latest Balance Due Payment Auto loans Personal installment loans Home improvement loan Single-payment loans Credit cards Mastercard (retail charge cards, bank cards, T&E Shell cards, etc.) Personal line of credit $ $ Totals $ 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- 1 2 AN INVENTORY OF CONSUMER DEBT 3 Name Date November 12, 2019 Current Latest Monthly Payment Balance 6 Type of Consumer Debt 7 Auto loans Creditor Due 1. 2. $ 8 9 3. 1. 10 Education loans 11 12 Personal installment loans 2. 1. 13 2. 4 Home improvement loan 5 Other installment loans 1 6 2. 7 Single-payment loans 1. 8 2. 9 Credit cards (retail charge 0 cards, bank cards, T&E 1cards, etc.) 2 1. 2. 3. 4. 5. 6. 7. Overdraft protection line Personal line of credit Home equity credit line Loan on life insurance Margin loan from broker Other loans 1. 2. 3. Totals Total monthly payments Monthly take-home pay Leave the space blank ifthere is no monthly payment required on a loan (e.g., as witha Debt safety ratio x100 x100= 0.0% single-payment or education loan)