Fatzamata and Maggie have $30,000 for a down payment on a future house. Their budget can accomodate a monthly mortgage payment of $1200. If they also owe the IRS $10,000, which must be paid off before they purchase the house, find the value of the most expensive house that they could buy if they take a mortgage for 30 years, at 7.8%, compounded monthly.
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Fatzamata and Maggie have $30,000 for a down payment on a future house. Their budget can accomodate a monthly mortgage payment of $1200. If they also owe the IRS $10,000, which must be paid off before they purchase the house, find the value of the most expensive house that they could buy if they take a mortgage for 30 years, at 7.8%, compounded monthly.
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- Bonnie and Claude want to buy a house. They can afford monthly payments of $1125.00. The bank offers them a mortgage at an interest rate of 3.10%, compounded semi-annually, with an amortization period of 25 years. a) What is the maximum amount of money the bank will lend them for their mortgage? Show your work. b) If they have $30,000 saved for a down payment, what is the maximum house price they can afford?Susanna wants to purchase a house costing $212,286. She plans to put $51,874 toward a down payment and finance the rest at 2.9% payable monthly for 30 years. If she stays with this payment schedule for the entire 30 years, how much will she actually pay for the house including down payment and interest?Vickie decides to sell her current home and move to a larger home. She estimates that she can sell her current home for $2,000,000 and can buy a larger home for 6,000,000. She plans to use the entire $2,000,000 sale proceeds as a down payment on the new home and will finance the remainder for 10 years at 6% nominal annual interest compounded monthly. What is her estimated monthly mortgage payment? Christine wants to be able to purchase a dream car for about $50,000 on January 1, 2028, just after she graduates from graduate school. She has a full-time job and started making deposits of $730 each month into an account that pays 6% compounded monthly beginning with the first deposit on February 1, 2023. The last deposit is to be made on January 1, 2028. Determine how much money she would have saved to buy the car. Will she be able to buy her dream car?
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