THX!!!

C option: Bad / Good

Chapter 7 Financial Planning Exercise 3 Calculating debt safety ratio Use Worksheet 7.1. Every 4 months, Larry Sun takes an inventory of the consumer debts he has outstanding. His latest tally shows that he still owes $3,750 on a home improvement loan (monthly payments of $300); he is making $125 monthly payments on a personal loan with a remaining balance of $875; he has a $1,750, secured single- payment loan that's due late next year; he has a $80,000 home mortgage on which he's making $1,200 monthly payments; he still owes $7,500 on a new car loan (monthly payments of $275); and he has a $900 balance on his MasterCard (minimum payment of $20), a $35 balance on his Exxon credit card (balance due in 30 days), and a $700 balance on a personal line of credit ($80 monthly payments). a. Use Worksheet 7.1 to prepare an inventory of Larry's consumer debt. Type of Consumer Debt Creditor Currently Monthly Payment Latest Balance Due 1 ta ta ta ta 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 ta MasterCard Exxon b. Find his debt safety ratio given that his take-home pay is $2,000 per month. Round the answer to 1 decimal place. % c. Would you consider this ratio to be good or bad? Bad