5. valerie takes home $45,000 per year from her job as a computer repairperson. her only debt obligations

are a car loan payment of $405 and a credit card payment of $110 every month. valerie go through the

steps to see if she is in danger of credit overload.

part 1: how much money does valerie take home per month?

part 2: what is 20% of valerie’s monthly take-home pay?

part 3: how much does valerie spend in total every month toward paying off her debt?

part 4: which is greater 20% of valerie’s monthly take-home pay or the amount valerie spends in total every month toward paying off her debit?

part 5: is valerie in danger of credit overload?

Show the changes to the t-accounts for the federal reserve and for commercial banks when the federal reserve buys $50 million in u.s. treasury bills. if the public holds a fixed amount of currency (so that all loans create an equal amount of deposits in the banking system), the minimum reserve ratio is 10%, and banks hold no excess reserves, by how much will deposits in the commercial banks change? by how much will the money supply change? show the final changes to the t-account for commercial banks when the money supply changes by this amount.

You wants to open a saving account.which account will grow his money the most

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?