The Adeeva's gross monthly income is $7400. They have 18 remaining payments of $270 on a new car. They are applying for a 15-year, $162,000 mortgage at 7.5%. The taxes and insurance on the house are $260 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. Click here for table of Monthly Payments a) Determine 28% of the Adeeva's adjusted monthly income. Monthly Principal and Interest Payment per $1000 of Mortgage $O | (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.) Number of Years Rate 10 15 20 25 30 c) Do they qualify for this mortgage? $5.27837 40 $10.12451 $7.39688 $6.05980 $4.77415 4.5 1036384 7.64993 6.32649 5.55832 5.06685 O No O Yes 50 7.90794 6.59956 5.84590 5.36822 55 10.85263 8.17083 6.87887 6.14087 5.67789 60 8.43857 7.16431 64401 5.99551 65 11.35480 8.71107 7.45573 6.75207 632068 7.0 11.61085 8.98828 7.75299 7.06779 665302 7.5 I1.87018 9.27012 8.05593 7.38991 6.99215 80 12.13276 9.55652 8.36440 7.71816 7.33765 8.5 12.39857 984740 867823 8.05227 7.68913 90 12.66758 10.14267 8.99726 8.39196 8.04623 9.5 12.93976 10.44225 9.32131 8.73607 840RS4 100 13.21507 10.74605 9.65022 9.08701 8.77572 10.5 13.49350 11.05390 9.98380 9.44182 9.14739 11.0 13.77500 11.36597 10.32188 9.80113 952323 11.5 14.05954 11.68190 10.6640 10.16469 9.90291 120 14.34709 12.00168 11.01086 10.53224 10.28613
The Adeeva's gross monthly income is $7400. They have 18 remaining payments of $270 on a new car. They are applying for a 15-year, $162,000 mortgage at 7.5%. The taxes and insurance on the house are $260 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. Click here for table of Monthly Payments a) Determine 28% of the Adeeva's adjusted monthly income. Monthly Principal and Interest Payment per $1000 of Mortgage $O | (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.) Number of Years Rate 10 15 20 25 30 c) Do they qualify for this mortgage? $5.27837 40 $10.12451 $7.39688 $6.05980 $4.77415 4.5 1036384 7.64993 6.32649 5.55832 5.06685 O No O Yes 50 7.90794 6.59956 5.84590 5.36822 55 10.85263 8.17083 6.87887 6.14087 5.67789 60 8.43857 7.16431 64401 5.99551 65 11.35480 8.71107 7.45573 6.75207 632068 7.0 11.61085 8.98828 7.75299 7.06779 665302 7.5 I1.87018 9.27012 8.05593 7.38991 6.99215 80 12.13276 9.55652 8.36440 7.71816 7.33765 8.5 12.39857 984740 867823 8.05227 7.68913 90 12.66758 10.14267 8.99726 8.39196 8.04623 9.5 12.93976 10.44225 9.32131 8.73607 840RS4 100 13.21507 10.74605 9.65022 9.08701 8.77572 10.5 13.49350 11.05390 9.98380 9.44182 9.14739 11.0 13.77500 11.36597 10.32188 9.80113 952323 11.5 14.05954 11.68190 10.6640 10.16469 9.90291 120 14.34709 12.00168 11.01086 10.53224 10.28613
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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Question
![The Adeeva's gross monthly income is $7400. They have 18 remaining payments of $270 on a new car. They are applying for a 15-year, $162,000 mortgage at 7.5%. The taxes and insurance on the house are $260 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 payment, including principal, interest, taxes, and homeowners' insurance.
$____ (Round to the nearest cent.)
c) Do they qualify for this mortgage?
- ☐ No
- ☐ Yes
To solve these problems, use the table:
[Table Image: Monthly Principal and Interest Payment per $1000 of Mortgage]
### Table Explanation:
The table shows the Monthly Principal and Interest Payment per $1000 of Mortgage. It is organized by interest rate (Rate %) and loan term (Number of Years: 10, 15, 20, 25, 30).
For example, for a 7.5% interest rate on a 15-year mortgage, the monthly payment per $1000 would be $9.27828.
To calculate the total monthly principal and interest payment for the Adeeva's $162,000 mortgage, multiply the rate from the table by 162 (the number of $1000s in their loan).
Add the monthly taxes and insurance costs of $260 to the result to find the total monthly cost. This figure will determine whether it remains within the 28% threshold of their adjusted income.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0d79c4c-40ce-427b-b4a0-26ffd9f423cd%2F73141179-2345-400c-a6fe-00f76a6c4c89%2Fkic36mg_processed.png&w=3840&q=75)
Transcribed Image Text:The Adeeva's gross monthly income is $7400. They have 18 remaining payments of $270 on a new car. They are applying for a 15-year, $162,000 mortgage at 7.5%. The taxes and insurance on the house are $260 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 payment, including principal, interest, taxes, and homeowners' insurance.
$____ (Round to the nearest cent.)
c) Do they qualify for this mortgage?
- ☐ No
- ☐ Yes
To solve these problems, use the table:
[Table Image: Monthly Principal and Interest Payment per $1000 of Mortgage]
### Table Explanation:
The table shows the Monthly Principal and Interest Payment per $1000 of Mortgage. It is organized by interest rate (Rate %) and loan term (Number of Years: 10, 15, 20, 25, 30).
For example, for a 7.5% interest rate on a 15-year mortgage, the monthly payment per $1000 would be $9.27828.
To calculate the total monthly principal and interest payment for the Adeeva's $162,000 mortgage, multiply the rate from the table by 162 (the number of $1000s in their loan).
Add the monthly taxes and insurance costs of $260 to the result to find the total monthly cost. This figure will determine whether it remains within the 28% threshold of their adjusted income.
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