The Adeeva's gross monthly income is $4200. They have 18 remaining payments of $210 on a new car. They are applying for a 20-year, $103,000 mortgage at 7.0%.The taxes and insurance on the house are $340 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. a) Determine 28% of the Adeeva's adjusted monthly income.(Round to the nearest cent.) b) Determine the Adeeva's total monthly mortgage payement,including principal,interest,taxes, and homeowners insurance. c) Do they qualify for this mortgage?
The Adeeva's gross monthly income is $4200. They have 18 remaining payments of $210 on a new car. They are applying for a 20-year, $103,000 mortgage at 7.0%.The taxes and insurance on the house are $340 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. a) Determine 28% of the Adeeva's adjusted monthly income.(Round to the nearest cent.) b) Determine the Adeeva's total monthly mortgage payement,including principal,interest,taxes, and homeowners insurance. 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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The Adeeva's gross monthly income is $4200. They have 18 remaining payments of $210 on a new car. They are applying for a 20-year, $103,000 mortgage at 7.0%.The taxes and insurance on the house are $340 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.
a) Determine 28% of the Adeeva's adjusted monthly income.(Round to the nearest cent.)
b) Determine the Adeeva's total monthly mortgage payement,including principal,interest,taxes, and homeowners insurance.
c) Do they qualify for this mortgage?
Transcribed Image Text:Monthly Principal and Interest Payment per $1000 of Mortgage
Number of Years
Rate %
10
15
20
25
30
4.0
$10.12451
$7.39688
$6.05980
$5.27837
$4.77415
4.5
10.36384
7.64993
6.32649
5.55832
5.06685
5.0
10.60655
7.90794
6.59956
5.84590
5.36822
5.5
10.85263
8.17083
6.87887
6.14087
5.67789
6.0
11.10205
8.43857
7.16431
6.44301
5.99551
6.5
11.35480
8.71107
7.45573
6.75207
6.32068
7.0
11.61085
8.98828
7.75299
7.06779
6.65302
7.5
11.87018
9.27012
8.05593
7.38991
6.99215
8.0
12.13276
9.55652
8.36440
7.71816
7.33765
8.5
12.39857
9.84740
8.67823
8.05227
7.68913
9.0
12.66758
10.14267
8.99726
8.39196
8.04623
9.5
12.93976
10.44225
9.32131
8.73697
8.40854
10.0
13.21507
10.74605
9.65022
9.08701
8.77572
10.5
13.49350
11.05399
9.98380
9.44182
9.14739
11.0
13.77500
11.36597
10.32188
9.80113
9.52323
11.5
14.05954
11.68190
10.66430
10.16469
9.90291
12.0
14.34709
12.00168
11.01086
10.53224
10.28613
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