A public relations specialist earns $71,500 salary each year. He/she wants to spend no more than three times his/her salary on a house. What is the maximum price of a home that he/she can afford? A. If a 20% down payment is required, what is the amount financed? B. If he/she buys a home for the maximum he/she can afford, what is the monthly mortgage payment for a 25 year fixed interest loan at 3.25% compounded monthly? C. How much will he/she pay in over the 25 year loan? D. How much will he/she pay in interest over the 25 year loan?

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A: Here, Loan Amount is $250,000.00 Time Period of Loan is 16 months Interest Rate is 1.5% per month

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A: CAPM stands for capital asset pricing model. It is a very important theoretical concept in finance.

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Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.