Eva is meeting with the bank on July 10, 2021. She is looking to buy a...
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Eva is meeting with the bank on July 10, 2021. She is looking to buy a home and knows that the bank will be running numbers to determine her ability in meeting loan repayments. Item Value or amounts as of July 10, 2021 Savings account $0 Furniture $6,750 Tax-Free Savings Account (TFSA) (note: Eva started as of July 1, 2020 saving $500/month on the 1st of each month and plans on continuing to do so) $6,000 Car $19,500 Monthly VISA payment (which she pays in full each month) $1,000 Gross annual income $118,400 Registered Retirement Savings Plan (RRSP) $0 Monthly rent $1,200 Weekly food purchases $100 Other monthly expenses Car loan (pays $450 in monthly loan payments) $2,700 $15,000 a) What is Eva's Net Worth? (1 mark) b) What is Eva's Savings Ratio? (Note that her employer withholds income taxes and other payroll deductions such as Quebec Pension Plan (QPP) and Employment Insurance (EI) contributions of $43,000) (1 mark) Eva is meeting with the bank on July 10, 2021. She is looking to buy a home and knows that the bank will be running numbers to determine her ability in meeting loan repayments. Item Value or amounts as of July 10, 2021 Savings account $0 Furniture $6,750 Tax-Free Savings Account (TFSA) (note: Eva started as of July 1, 2020 saving $500/month on the 1st of each month and plans on continuing to do so) $6,000 Car $19,500 Monthly VISA payment (which she pays in full each month) $1,000 Gross annual income $118,400 Registered Retirement Savings Plan (RRSP) $0 Monthly rent $1,200 Weekly food purchases $100 Other monthly expenses Car loan (pays $450 in monthly loan payments) $2,700 $15,000 a) What is Eva's Net Worth? (1 mark) b) What is Eva's Savings Ratio? (Note that her employer withholds income taxes and other payroll deductions such as Quebec Pension Plan (QPP) and Employment Insurance (EI) contributions of $43,000) (1 mark)
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To calculate Evas net worth we need to determine the total value of her assets and subtract her liab... View the full answer
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