The following table shows annual rates for various types of loans in 2015. Assume monthly payments and compounding periods. Loan Type 30-Year Mortgage 15-Year Mortgage 5-Year Car Loan 4-Year Car Loan Credit Cards October Rate (%) 3.93 3.14 4.30 4.24 13.10 November Rate (%) 4.09 3.31 4.31 4.26 13.10 December Rate (%) 4.09 3.34 4.34 4.29 13.10 You were considering buying a home with a 30-year mortgage in November 2015 and could afford to make a down payment of $70,000 and up to $1900 per month on mortgage payments. How much could you have afforded to pay for the home? (
The following table shows annual rates for various types of loans in 2015. Assume monthly payments and compounding periods. Loan Type 30-Year Mortgage 15-Year Mortgage 5-Year Car Loan 4-Year Car Loan Credit Cards October Rate (%) 3.93 3.14 4.30 4.24 13.10 November Rate (%) 4.09 3.31 4.31 4.26 13.10 December Rate (%) 4.09 3.34 4.34 4.29 13.10 You were considering buying a home with a 30-year mortgage in November 2015 and could afford to make a down payment of $70,000 and up to $1900 per month on mortgage payments. How much could you have afforded to pay for the home? (
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 following table shows annual rates for various types of loans in 2015. Assume monthly payments and compounding periods.
| Loan Type |
30-Year Mortgage |
15-Year Mortgage |
5-Year Car Loan |
4-Year Car Loan |
Credit Cards |
|---|---|---|---|---|---|
| October Rate (%) |
3.93 | 3.14 | 4.30 | 4.24 | 13.10 |
| November Rate (%) |
4.09 | 3.31 | 4.31 | 4.26 | 13.10 |
| December Rate (%) |
4.09 | 3.34 | 4.34 | 4.29 | 13.10 |
You were considering buying a home with a 30-year mortgage in November 2015 and could afford to make a down payment of $70,000 and up to $1900 per month on mortgage payments. How much could you have afforded to pay for the home? (Round your answer to the nearest cent.)
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