The Adeeva's gross monthly income is $3600. They have 18 remaining payments of $370 on a new car. They are applying for a 20-year, $39,000 mortgage at 7.0%. The taxes and insurance on the house are $460 per month. The bank will only approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income. Complete parts (a) through (c) below. Click the icon to view the table of monthly payments. a) Determine 28% of the Adeeva's adjusted monthly income. $ (Round to the nearest cent.) b) Determine the Adeeva's total monthly mortgage payment, including principal, interest, taxes, and homeowners' insurance. (Round to the nearest cent.) c) Do they qualify for this mortgage?
The Adeeva's gross monthly income is $3600. They have 18 remaining payments of $370 on a new car. They are applying for a 20-year, $39,000 mortgage at 7.0%. The taxes and insurance on the house are $460 per month. The bank will only approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income. Complete parts (a) through (c) below. Click the icon to view the table of monthly payments. a) Determine 28% of the Adeeva's adjusted monthly income. $ (Round to the nearest cent.) b) Determine the Adeeva's total monthly mortgage payment, including principal, interest, taxes, and homeowners' insurance. (Round to the nearest cent.) c) Do they qualify for this mortgage?
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
Problem 1PS
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Transcribed Image Text:The Adeeva's gross monthly income is $3600. They have 18 remaining payments of $370 on a new car. They are applying for a 20-year,
$39,000 mortgage at 7.0%. The taxes and insurance on the house are $460 per month. The bank will only approve a loan that has a total
monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their
adjusted monthly income. Complete parts (a) through (c) below.
Click the icon to view the table of monthly payments.
...
a) Determine 28% of the Adeeva's adjusted monthly income.
(Round to the nearest cent.)
b) Determine the Adeeva's total monthly mortgage payment, including principal, interest, taxes, and homeowners' insurance.
$ (Round to the nearest cent.)
c) Do they qualify for this mortgage?.
O No
O Yes
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