(zoom in)

Ben wants to decide to use credits. He has a take-home income of $1,500. His total monthly payments on consumer debt are $260. (In all of the following questions, fill the number by rounding to the second digit after the decimal. Do not put dollar sign," "percent signor thousand separators in the blank.) (1) His debt safety ratio is %. (2) Using the suggested maximum debt safety ratio (which is 20%), his maximum debt burden is $ per month Now, we focus on only his credit card accounts. He has a $280 balance on his credit card account. The minimum payment on this credit card account is 2.5% of the latest balance or $20, whichever is greater. The APR on a credit card account is 16% (3) His minimum payment for this credit card account this month is $ (4) Suppose he pays the minimum payment Lyour exact answer in Question (3) after rounding) in this month. How much of the minimum payment will go to interest? $ How much of the minimum payment will pay down the principal? $ (5) Suppose he pays $500 interest on credit cards this year, and he is a single taxpayer in the 28% marginal tax bracket, his tax savings from the interest payments on credit cards are $ He also owns a house. The market value of his house is $110,000, and he has a first mortgage balance of $70,000. A home equity loan lender requires him a 72% loan-to- market value ratio. (5) How large could his home equity loan be? $