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The​ Adeeva's gross monthly income is $4200. They have 18 remaining payments of $210 on a new car. They are applying for a 20​-year, $103,000 mortgage at 7.0​%.The taxes and insurance on the house are $340 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 payement,including principal,interest,taxes, and homeowners insurance. c) Do they qualify for this mortgage?

The​ Adeeva's gross monthly income is $4200. They have 18 remaining payments of $210 on a new car. They are applying for a 20​-year, $103,000 mortgage at 7.0​%.The taxes and insurance on the house are $340 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 payement,including principal,interest,taxes, and homeowners insurance. c) Do they qualify for this mortgage?

Essentials Of Investments
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​ Adeeva's gross monthly income is $4200. They have 18 remaining payments of $210 on a new car. They are applying for a 20​-year, $103,000 mortgage at 7.0​%.The taxes and insurance on the house are $340 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 payement,including principal,interest,taxes, and homeowners insurance.

c) Do they qualify for this mortgage?

Monthly Principal and Interest Payment per $1000 of Mortgage Number of Years Rate % 10 15 20 25 30 4.0 $10.12451 $7.39688 $6.05980 $5.27837 $4.77415 4.5 10.36384 7.64993 6.32649 5.55832 5.06685 5.0 10.60655 7.90794 6.59956 5.84590 5.36822 5.5 10.85263 8.17083 6.87887 6.14087 5.67789 6.0 11.10205 8.43857 7.16431 6.44301 5.99551 6.5 11.35480 8.71107 7.45573 6.75207 6.32068 7.0 11.61085 8.98828 7.75299 7.06779 6.65302 7.5 11.87018 9.27012 8.05593 7.38991 6.99215 8.0 12.13276 9.55652 8.36440 7.71816 7.33765 8.5 12.39857 9.84740 8.67823 8.05227 7.68913 9.0 12.66758 10.14267 8.99726 8.39196 8.04623 9.5 12.93976 10.44225 9.32131 8.73697 8.40854 10.0 13.21507 10.74605 9.65022 9.08701 8.77572 10.5 13.49350 11.05399 9.98380 9.44182 9.14739 11.0 13.77500 11.36597 10.32188 9.80113 9.52323 11.5 14.05954 11.68190 10.66430 10.16469 9.90291 12.0 14.34709 12.00168 11.01086 10.53224 10.28613 Print Done
Transcribed Image Text:Monthly Principal and Interest Payment per $1000 of Mortgage Number of Years Rate % 10 15 20 25 30 4.0 $10.12451 $7.39688 $6.05980 $5.27837 $4.77415 4.5 10.36384 7.64993 6.32649 5.55832 5.06685 5.0 10.60655 7.90794 6.59956 5.84590 5.36822 5.5 10.85263 8.17083 6.87887 6.14087 5.67789 6.0 11.10205 8.43857 7.16431 6.44301 5.99551 6.5 11.35480 8.71107 7.45573 6.75207 6.32068 7.0 11.61085 8.98828 7.75299 7.06779 6.65302 7.5 11.87018 9.27012 8.05593 7.38991 6.99215 8.0 12.13276 9.55652 8.36440 7.71816 7.33765 8.5 12.39857 9.84740 8.67823 8.05227 7.68913 9.0 12.66758 10.14267 8.99726 8.39196 8.04623 9.5 12.93976 10.44225 9.32131 8.73697 8.40854 10.0 13.21507 10.74605 9.65022 9.08701 8.77572 10.5 13.49350 11.05399 9.98380 9.44182 9.14739 11.0 13.77500 11.36597 10.32188 9.80113 9.52323 11.5 14.05954 11.68190 10.66430 10.16469 9.90291 12.0 14.34709 12.00168 11.01086 10.53224 10.28613 Print Done
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