Respond to the following scenario:

Recently, Guy Bailey recently opened a one$-$person consulting firm which he owns and operates and is doing business as Valley Consultants. The business was blessed with some initial success and Bailey decides to go on a shopping spree. First, he buys a state$-$of$-$the$-$art Bose surround sound audio system for his home from Texas Sound and Electronics. Next, he buys a Trek Fuel EX $9\mathrm{.}9$ mountain bike and Rhino Rack from Bicycle World. Later he purchases a brand$-$new BMW $428$i from the local BMW dealer. Finally, he goes back to Texas Sound and Electronics and buys a high$-$end iMac desktop with a color printer$/$scanner and lots of bells and whistles. Each of these items was purchased under installment sales contracts. Alas, all good things must come to an end and after the initial hot start, things slowed down substantially for the consulting business. Bailey was unable to make any of the required monthly payments and defaulted on all of the loans within a year of purchase. Using the information presented in Chapter $30,$ answer the following questions: