1. Ch07 Financial Planning Exercise 2 eBook Chapter 7 Financial Planning Exercise 2 Calculating debt safety ratio 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 $2,000 on a home improvement loan (monthly payments of $275); he is making $50 monthly payments on a personal loan with a remaining balance of $850; he has a $2,250, secured single-payment loan that's due late next year; he has a $60,000 home mortgage on which he's making $850 monthly payments; he still owes $9,500 on a new car loan (monthly payments of $275); and he has an $860 balance on his Mastercard (minimum payment of $20), a $30 balance on his Shell credit card (balance due in 30 days), and a $800 balance on a personal line of credit ($80 monthly payments). a. Use Worksheet 7.1 to prepare an inventory of Leo's consumer debt. Type of Consumer Debt Creditor 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 $ $ $ c. Would you consider this ratio to be good or bad? -Select- $ $ $ Latest Balance Due S $ $ $ $ b. Find his debt safety ratio, given that his take-home pay is $2,500 per month. Round the answer to 1 decimal place