Ivana has just moved to Edmonton to take up a position in theprovincial government, earning $72,000 a year. Edmonton is a bigcity, so she has decided to lease a car, as well as buy a downtowncondo. She has saved some money living at home with her parents upuntil now. But Ivana is a bit worried about her financial affairsas she has always had trouble managing money. For example, her lastcredit card statement showed a balance of $2,750 and she doesn’twant to take the money she has saved for a down payment to pay itoff. It seems she carries a balance from month to month all thetime and she knows that at a rate of 22%, compounded daily, she ispaying a lot of interest. PART A -Ivana’s credit card requires aminimum payment of 3% of the balance. Assume she sets her mind topaying this same amount each month until the balance is paid offand that she doesn’t charge anything new to the card. How long willit be before the balance is reduced to zero? (CALCULATION OF CREDITCARD REPAYMENT PERIOD) PART B - Ivana knows that the financialinstitution will calculate both the GDS and TDS ratio on anymortgage loan she arranges in order to determine whether or not shequalifies. Identify two weaknesses of these ratios. PART C - Ivanawants to lease a Subaru Crosstrek. Assume the listed price is$35,000. There are no provincial taxes in Alberta so she will onlypay the Federal GST of 5%. Ivana can make a down payment of $2,000and estimates that the value of the car after a 4-year term wouldbe $17,000. The applicable rate would be 6%, compounded monthly.Lease payments are required at the beginning of the month, and theapplicable taxes only apply to the monthly payment, not to the fullvalue of the car. What would be Ivana’s monthly car lease payment?(CALCULATION OF MONTHLY LEASE PAYMENT) PART D - If Ivana wishes tosatisfy a maximum 40% TDS ratio, what is the most she could pay permonth toward a condo mortgage? Assume her condo fees (1/2),municipal taxes and heating combined amount to $600 a month andfactor in the payment on her credit card and car lease.(CALCULATION OF MAXIMUM POSSIBLE CONDO MORTGAGE BASED ON A 40% TDSRATIO) PART E - At a rate of 3%, compounded semi-annual, how muchmortgage could Ivana afford if she takes a 25 year amortizationwith monthly payments? (CALCULATION OF MAXIMUM MORTGAGE)