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For questions 8 and 9: You are currently renting an apartment for $1200. You wonder how big of a house you could afford for the same amount. You figure about $200 would be taken up by insurance and taxes so you should probably only plan for a mortgage payment of around $1000. 8. How expensive of a house can you afford for $1000/month if current interest rates are averaging around 4.5% APR? 9. Most people search for homes based on "normal" amounts like $150,000, $200,000, $225,000. How much more would you have to pay each month if you wanted to "round up" to a "normal" amount?

For questions 8 and 9: You are currently renting an apartment for $1200. You wonder how big of a house you could afford for the same amount. You figure about $200 would be taken up by insurance and taxes so you should probably only plan for a mortgage payment of around $1000. 8. How expensive of a house can you afford for $1000/month if current interest rates are averaging around 4.5% APR? 9. Most people search for homes based on "normal" amounts like $150,000, $200,000, $225,000. How much more would you have to pay each month if you wanted to "round up" to a "normal" amount?

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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Please answer both subparts. I will really upvote
For questions 8 and 9: You are currently renting an apartment for $1200. You wonder how big of a house you could afford for the same amount. You figure about $200 would be taken up by insurance and taxes so you should probably only plan for a mortgage payment of around $1000. 8. How expensive of a house can you afford for $1000/month if current interest rates are averaging around 4.5% APR? 9. Most people search for homes based on "normal" amounts like $150,000, $200,000, $225,000. How much more would you have to pay each month if you wanted to "round up" to a "normal" amount?
Transcribed Image Text:For questions 8 and 9: You are currently renting an apartment for $1200. You wonder how big of a house you could afford for the same amount. You figure about $200 would be taken up by insurance and taxes so you should probably only plan for a mortgage payment of around $1000. 8. How expensive of a house can you afford for $1000/month if current interest rates are averaging around 4.5% APR? 9. Most people search for homes based on "normal" amounts like $150,000, $200,000, $225,000. How much more would you have to pay each month if you wanted to "round up" to a "normal" amount?
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