A4. When TDSR exceeds the maximum allowable limit, what are four options that you could consider based on your spending above? (8 marks) AS. Your professor (who currently drives a practical, family-friendly Mazda) is going through a mid-life crisis and announces to the class that she is going to buy a 2021 Ferrari 488 Spider with a sticker price of over $300,000 and that will be the answer to all of life's problems. Explain three concerns you have about this purchase from a wealth management perspective (3 marks) A2. Assume a 12% down payment. Calculate the monthly loan payment on the remaining amount (total price - 12% down payment) if paid monthly over 5 years. Assume a car loan rate of 8% compounded monthly. (10 marks) You can refer to your notes from Math of Finance (Math 10037) if you choose to do the calculations by hand. Otherwise, the following format, may help refresh your memory of the calculator functions for this step: Set Set your Ball Plus Calculator to END. your PNY = 12 for monthly payments Set your C/Y = 12 for monthly compounding PV = The initial amount of your car loan (= purchase price - down payment) FV = Zero (in the future your loan balance will be completely repaid) N = 60 (5 years x 12 monthly payments) I/Y = 8 CPT PMT=Your monthly loan payment A3. Make the following assumptions: Your future income = $45,000/year You pay $1200/month in rent You have a cell phone bill of $75/month You have a student loan payment of $200/month You have a VISA card with a $1000 limit and $1000 outstanding balance Car Insurance will cost $3000/year Groceries cost you $100/week Gas will cost you $50/week You have no other expenses. Calculate your TDSR and your Debt-to-Payments Ratio given the above-mentioned assumptions and including the car loan payment you just calculated. (12 marks) Would you qualify for this purchase? (2 marks) BUSN BE450 - Assignmental - Page 2 Purpose of the Assignment Upon completion of this assignment, you will be able to: . Identify features of a used vehicle that affect your purchase decision; Identify factors that affect the cost of automobile insurance; Calculate the monthly amount of a car payment; Calculate TDSR and determine whether you qualify for a car loan; and Consider the implications of a vehicle purchase from both a risk management and wealth management perspective. Plan for your future car purchase! Assume that you have a goal of purchasing a used car after graduation. Completion of this assignment will require research and multiple calculations. A1. Select a used vehicle model year 2019 or older that you are interested in purchasing. While price is important, other factors must also be considered; such as reliability, cost of repair/maintenance, fuel efficiency, and factors which will affect your insurance premiums. A1.1) You must submit a copy of the listing of the vehicle. Each student should have a different chosen vehicle. A4. When TDSR exceeds the maximum allowable limit, what are four options that you could consider based on your spending above? (8 marks) AS. Your professor (who currently drives a practical, family-friendly Mazda) is going through a mid-life crisis and announces to the class that she is going to buy a 2021 Ferrari 488 Spider with a sticker price of over $300,000 and that will be the answer to all of life's problems. Explain three concerns you have about this purchase from a wealth management perspective (3 marks) A2. Assume a 12% down payment. Calculate the monthly loan payment on the remaining amount (total price - 12% down payment) if paid monthly over 5 years. Assume a car loan rate of 8% compounded monthly. (10 marks) You can refer to your notes from Math of Finance (Math 10037) if you choose to do the calculations by hand. Otherwise, the following format, may help refresh your memory of the calculator functions for this step: Set Set your Ball Plus Calculator to END. your PNY = 12 for monthly payments Set your C/Y = 12 for monthly compounding PV = The initial amount of your car loan (= purchase price - down payment) FV = Zero (in the future your loan balance will be completely repaid) N = 60 (5 years x 12 monthly payments) I/Y = 8 CPT PMT=Your monthly loan payment A3. Make the following assumptions: Your future income = $45,000/year You pay $1200/month in rent You have a cell phone bill of $75/month You have a student loan payment of $200/month You have a VISA card with a $1000 limit and $1000 outstanding balance Car Insurance will cost $3000/year Groceries cost you $100/week Gas will cost you $50/week You have no other expenses. Calculate your TDSR and your Debt-to-Payments Ratio given the above-mentioned assumptions and including the car loan payment you just calculated. (12 marks) Would you qualify for this purchase? (2 marks) BUSN BE450 - Assignmental - Page 2 Purpose of the Assignment Upon completion of this assignment, you will be able to: . Identify features of a used vehicle that affect your purchase decision; Identify factors that affect the cost of automobile insurance; Calculate the monthly amount of a car payment; Calculate TDSR and determine whether you qualify for a car loan; and Consider the implications of a vehicle purchase from both a risk management and wealth management perspective. Plan for your future car purchase! Assume that you have a goal of purchasing a used car after graduation. Completion of this assignment will require research and multiple calculations. A1. Select a used vehicle model year 2019 or older that you are interested in purchasing. While price is important, other factors must also be considered; such as reliability, cost of repair/maintenance, fuel efficiency, and factors which will affect your insurance premiums. A1.1) You must submit a copy of the listing of the vehicle. Each student should have a different chosen vehicle