a) Determine 28% of the Adeeva's adjusted monthly income. $(Round to the nearest cent.) b) Determine the Adeeva's total monthly mortgage payment, including principal, interest, taxes, and homeowners' insurance. (Round to the nearest cent.) c) Do they qualify for this mortgage? O Yes O No
a) Determine 28% of the Adeeva's adjusted monthly income. $(Round to the nearest cent.) b) Determine the Adeeva's total monthly mortgage payment, including principal, interest, taxes, and homeowners' insurance. (Round to the nearest cent.) c) Do they qualify for this mortgage? O Yes O No
Chapter3: Income Sources
Section: Chapter Questions
Problem 41P
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Question
Transcribed Image Text:3
4
n5
on 6
on 7
tion 8
Monthly Principal and Interest Payment per $1000 of Mortgage
Rate %
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7,5
8.0
8.5
9.0
9.5
10.0
10.5
11.0
10
$9.65607
9.88859
10.12451
10.36384
Number of Years
20
25
$5.54598
$4.74211
5.79960
5.00624
6.05980
5.27837
6.32649
5.55832
5.06685
6.59956 5.84590
5.36822
6.87887
6.14087
5.67789
7.16431
6.44301
5.99551
7.45573 6.75207 6.32068
7.06779
6.65302
7.38991
6.99215
7.33765
7.68913
8.04623
8.40854
8.77572
9.14739
9.80113 9.52323
15
$6.90582
7.14883
7.39688
7.64993
10.60655
7.90794
10.85263 8.17083
11.10205 8.43857
11.35480 8.71107
11.61085 8.98828 7.75299
11.87018 9.27012 8.05593
12.13276 9.55652 8.36440
12.39857 9.84740
8.67823
12.66758 10.14267 8.99726
12.93976 10.44225 9.32131
13.21507 10.74605
13.49350
11.05399
13.77500
11.36597
9.65022
9.98380
10.32188
Print
7.71816
8.05227
8.39196
8.73697
9.08701
9.44182
Done
30
$4.21604
4.49045
4.77415
Transcribed Image Text:The Adeeva's gross monthly income is $6300. They have 18 remaining payments of $290 on a new car. They are
Kapplying for a 30-year, $204,000 mortgage at 7.0%. The taxes and insurance on the house are $460 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. Complete parts (a) through
(c) below.
Click the icon to view the table of monthly payments.
a) Determine 28% of the Adeeva's adjusted monthly income.
$ (Round to the nearest cent.)
b) Determine the Adeeva's total monthly mortgage payment, including principal, interest, taxes, and homeowners
insurance.
(Round to the nearest cent.)
c) Do they quality for this mortgage?
00
CAFF
Yes
No
ime
imit
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