A lender requires that monthly mortgage payments be no more than 30% of gross monthly incomewith a maximum term of 25 years. If you can makeonly a 20% down payment, what is the minimummonthly income needed to purchase a $450,000house when the interest rate is 9% compoundedmonthly?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A lender requires that monthly mortgage payments be no more than 30% of gross monthly income
with a maximum term of 25 years. If you can make
only a 20% down payment, what is the minimum
monthly income needed to purchase a $450,000
house when the interest rate is 9% compounded
monthly?

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