You can afford monthly payments of $800. If current mortgage rates are 3.06% for a 15-year fixed rate loan, how much can you afford to borrow? If you are required to make a 20% down payment and you have the cash on hand to do it, how expensive a home can you afford? (Hint: You will need to solve the loan payment formula for P.)

You can afford monthly payments of $800. If current mortgage rates are 3.06% for a 15-year fixed rate loan, how much can you afford to borrow? If you are required to make a 20% down payment and you have the cash on hand to do it, how expensive a home can you afford? (Hint: You will need to solve the loan payment formula for P.)

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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Suppose you are buying your first condo for $190,000, and you will make a $10,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at 3.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? You are not required to show calculations. However to receive credit you must provide the inputs used (N, PMT, FV, I/Y, PV) to solve. If you utilize a template, you can copy and paste the section used in the submission. $808.28 $853.18 $527.78
Loan Basics Inputs Present value 325,000 Interest rate/year Number of years 4.00% 30 Present Value using a Time Line Year 10 15 20 25 30 Beginning Principal Balance Payment Interest component Principal component
You can afford a $300 per month car payment. You've found a 5 year loan at 7% interest. How big of a loan can you afford? Round your answer to the nearest cent.
Use the advice given in the text from most financial advisors regarding mortgages to solve the problem. 1) Suppose that your gross annual income is $108,000. 1) (a) What is the maximum amount you should spend each month on a mortgage payment? (b) What is the maximum amount you should spend each month for total credit obligations? (c) If your monthly mortgage payment is 75% of the maximum amount you can afford, what is the maximum amount you should spend each month for all other debt? A) (a) $2520; (b) $3240; (c) $1350 B) (a) $2520; (b) $3240; (c) $90 C) (a) $2520; (b) $3240; (c) $1890 D) (a) $30,240; (b) $38,880; (c) $16,200 Use the preference table to answer the question. 2) The preference table shows the results of an election among A, B, and C. 42 C B A First choice Second choice A A B Third choice B C C nothed who is the winner and (b) Is the majority criterion satisfied? Number of votes 10 2)
Suppose your gross monthly income is $5,300 and your current monthly payments are $525. If the bank will allow you to pay up to 36% of gross monthly income (less current monthly payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 30-year mortgage is 4.65%? (Round your answer to the nearest cent.)
You can afford an $800 per month mortgage payment. You found a 30-year loan at 6% interest. How big of a loan can you afford? How much will you pay the loan company? How much of that money is interest?
You are looking to buy a car. You can afford $460 in monthly payments for four years. In addition to the loan, you can make a $1100 down payment. If interest rates are 7.25 percent APR, what price of car can you afford
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You want to buy a $130,000 home. You plan to pay 5% as a down payment, and take out a 30 4.65% interest for the rest. The bank will charge 1.5 points on the amount financed. year loan at a) What is the amount of the down payment? b) How much is the loan amount going be? c) What will be the amount charged for 1.5 points? 1 point is 1 % of the mortgage amount d) Find the amount of the monthly payment. (Do not add the cost of the points to the loan amount) Hint: click here
You can afford a $800 per month mortgage payment. You've found a 30 year loan at 8%6 interest a) How big of a loan can you afford? b) How much total money will you pay the loan company? c) How much of that money is interest?
You can afford a $900 per month mortgage payment. You found a 30-year loan at 7% interest. How big of a loan can you afford? How much total money will you pay the loan company? How much of that moany is interest?
You want to buy a $202,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? $ 181800 b) What will your monthly payments be if the interest rate is 6%? 1089.98 C) What will your monthly payments be if the interest rate is 7%? Submit Question

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