J and R agreed to be married to each other and the bungalow in which J was residing before seems too small for newlyweds, so J and R are thinking whether to move to another rental apartment or to purchase a home of their own. They visit to their local banker to get an idea of the home they can afford with their combined incomes. Characters in the case: J and R. Adequate information: The combined checking account of R and J is $4,300. Combined savings account of J and R is $55,200. Combined emergency fund savings account of J and R is $19,100. IRA balance is $24,000. Cars worth is $12,000 of J and $20,000 for R. Student loan balance is 0. Credit card balance is 0. Car loan amount is $8,000. Annual net income of J is $31,500 and R is $59,000. Monthly utilities expenses are $160. Monthly food expenses $325. Monthly Gas/ maintenance expenses are $275. Credit card payment is $0. Car loan payment is $289. Entertainment is $300. To determine: J and R’s mortgage payment, using the 5 percent rate for 30 years on the mortgage balance of $233,000.

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Chapter 9, Problem 6CC

Summary Introduction

Case summary:

J and R agreed to be married to each other and the bungalow in which J was residing before seems too small for newlyweds, so J and R are thinking whether to move to another rental apartment or to purchase a home of their own. They visit to their local banker to get an idea of the home they can afford with their combined incomes.

Characters in the case: J and R.

Adequate information: The combined checking account of R and J is $4,300.
Combined savings account of J and R is $55,200.
Combined emergency fund savings account of J and R is $19,100.
IRA balance is $24,000.
Cars worth is $12,000 of J and $20,000 for R.
Student loan balance is 0.
Credit card balance is 0.
Car loan amount is $8,000.
Annual net income of J is $31,500 and R is $59,000.
Monthly utilities expenses are $160.
Monthly food expenses $325.
Monthly Gas/ maintenance expenses are $275.
Credit card payment is $0.
Car loan payment is $289.
Entertainment is $300.

To determine:

J and R’s mortgage payment, using the 5 percent rate for 30 years on the mortgage balance of $233,000.

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