You are buying your first house. The purchase price is $250,000. You are putting 5% down. You locked in at a 7% interest rate amortized over 30 years. Taxes are $2,200 per year and hazard insurance equals $400 per year. You have 48 months left on your new car payments that equal $650 per month. You also have 20-years of student loans remaining at $250 per month. Your gross annual income is $98,000. Benefits, including social security and insurance are approximately 27.5% of your gross income. What is the PITI? O $1,606 O $1,506 O $1,772 $1,806
You are buying your first house. The purchase price is $250,000. You are putting 5% down. You locked in at a 7% interest rate amortized over 30 years. Taxes are $2,200 per year and hazard insurance equals $400 per year. You have 48 months left on your new car payments that equal $650 per month. You also have 20-years of student loans remaining at $250 per month. Your gross annual income is $98,000. Benefits, including social security and insurance are approximately 27.5% of your gross income. What is the PITI? O $1,606 O $1,506 O $1,772 $1,806
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:You are buying your first house.
The purchase price is $250,000. You are putting 5% down. You locked in at a 7% interest rate
amortized over 30 years.
Taxes are $2,200 per year and hazard insurance equals $400 per year.
You have 48 months left on your new car payments that equal $650 per month. You also have 20-years
of student loans remaining at $250 per month.
Your gross annual income is $98,000. Benefits, including social security and insurance are
approximately 27.5% of your gross income.
What is the PITI?
$1,606
O $1,506
O $1,772
O $1,806
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