The Adeeva's gross monthly income is $5200. They have 18 remaining paymentsof $300 on a new car. They are applying for a 15-year, $84,000 mortgage at6.5%. The taxes and insurance on the house are $360 per month. The bank willonly approve a loan that has a total monthly mortgage payment of principal,interest, property taxes, and homeowners' insurance that is less than or equalto 28% of their adjusted monthly income. Complete parts (a) through (c) below.Click the icon to view the table of monthly payments....a) Determine 28% of the Adeeva's adjusted monthly income.$ (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 Yes

Mortgage is the contract between the two parties one willing to borrow money and another willing to…

The Adeeva's gross monthly income is $5200. They have 18 remaining payme of $300 on a new car. They are applying for a 15-year, $84,000 mortgage at 5.5%. The taxes and insurance on the house are $360 per month. The bank wi 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 o 28% of their adjusted monthly income. Complete parts (a) through (c) below. Click the icon to view the table of monthly payments.

The Adeeva's gross monthly income is $5200. They have 18 remaining payme of $300 on a new car. They are applying for a 15-year, $84,000 mortgage at 5.5%. The taxes and insurance on the house are $360 per month. The bank wi 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 o 28% of their adjusted monthly income. Complete parts (a) through (c) below. Click the icon to view the table of monthly payments.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

The Adeeva's gross monthly income is $5200. They have 18 remaining payments
of $300 on a new car. They are applying for a 15-year, $84,000 mortgage at
6.5%. The taxes and insurance on the house are $360 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 Yes

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