1.) Carl and Melissa have a monthly income of $6,000. They want to buy a house for $200,000 and make a down payment of $40,000. The monthly payment on a 15-year mortgage will be $2,000. On a 30-year mortgage, the monthly payment will be 1,350. which of the following would you recommend? A.) 15 year option B.) 30 year option C.) They cannot afford to buy a house at this point.
1.) Carl and Melissa have a monthly income of $6,000. They want to buy a house for $200,000 and make a down payment of $40,000. The monthly payment on a 15-year mortgage will be $2,000. On a 30-year mortgage, the monthly payment will be 1,350. which of the following would you recommend? A.) 15 year option B.) 30 year option C.) They cannot afford to buy a house at this point.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 5E
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1.) Carl and Melissa have a monthly income of $6,000. They want to buy a house for $200,000 and make a down payment of $40,000. The monthly payment on a 15-year mortgage will be $2,000. On a 30-year mortgage, the monthly payment will be 1,350. which of the following would you recommend?
A.) 15 year option
B.) 30 year option
C.) They cannot afford to buy a house at this point.
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Introduction:
VIEWCalculate the mortgage amount as follows:
VIEWCalculate the Annual percentage rate of 15-year mortgage by following below steps:
VIEWStep 2: Calculate the APR of 15-year mortgage as follows:
VIEWCalculate the Annual percentage rate of 30-year mortgage by following below steps:
VIEWStep 2: Calculate the APR of 30-year mortgage as follows:
VIEWConclusion:
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