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A public relations specialist earns $54,000 salary each year. He/she wants to spend no more than three times his/her salary on a house. a) What is the maximum price of a home that he/she is willing to pay if they don't want to spend more than three times the salaray? b) If a 15% down payment is required and he/she buys a home for the amount in part a), what is the loan amount for the mortgage (after the 15% down payment)? c) If he/she buys a home for the maximum he/she can afford with a 15% down payment (answer from part b), what is the monthly mortgage payment for a 20 year fixed interest loan at 4.45% compounded monthly?

A public relations specialist earns $54,000 salary each year. He/she wants to spend no more than three times his/her salary on a house. a) What is the maximum price of a home that he/she is willing to pay if they don't want to spend more than three times the salaray? b) If a 15% down payment is required and he/she buys a home for the amount in part a), what is the loan amount for the mortgage (after the 15% down payment)? c) If he/she buys a home for the maximum he/she can afford with a 15% down payment (answer from part b), what is the monthly mortgage payment for a 20 year fixed interest loan at 4.45% compounded monthly?

Essentials Of Investments
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
Section: Chapter Questions
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A public relations specialist earns $54,000 salary each year. He/she wants to spend no more than three times his/her salary on a house. a) What is the maximum price of a home that he/she is willing to pay if they don't want to spend more than three times the salaray? b) If a 15% down payment is required and he/she buys a home for the amount in part a), what is the loan amount for the mortgage (after the 15% down payment)? c) If he/she buys a home for the maximum he/she can afford with a 15% down payment (answer from part b), what is the monthly mortgage payment for a 20 year fixed interest loan at 4.45% compounded monthly?
Transcribed Image Text:A public relations specialist earns $54,000 salary each year. He/she wants to spend no more than three times his/her salary on a house. a) What is the maximum price of a home that he/she is willing to pay if they don't want to spend more than three times the salaray? b) If a 15% down payment is required and he/she buys a home for the amount in part a), what is the loan amount for the mortgage (after the 15% down payment)? c) If he/she buys a home for the maximum he/she can afford with a 15% down payment (answer from part b), what is the monthly mortgage payment for a 20 year fixed interest loan at 4.45% compounded monthly?
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