b) that his monthly house and property tax payment should not exceed 35% of his disposable monthly income. After researching the market, he determines he can obtain a 30-year home loan for 6.95% annual interest per year, compounded monthly. His monthly property tax payment will be approximately $150. What is the maximum amount he can pay for a house if his disposable monthly income is $2000? A person wants to buy a home. He has been advised
b) that his monthly house and property tax payment should not exceed 35% of his disposable monthly income. After researching the market, he determines he can obtain a 30-year home loan for 6.95% annual interest per year, compounded monthly. His monthly property tax payment will be approximately $150. What is the maximum amount he can pay for a house if his disposable monthly income is $2000? A person wants to buy a home. He has been advised
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 54P: On June 30, 2019, Kelly sold property for 240,000 cash and a 960,000 note due on September 30, 2020....
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Transcribed Image Text:b)
that his monthly house and property tax payment should not
exceed 35% of his disposable monthly income. After
researching the market, he determines he can obtain a 30-year
home loan for 6.95% annual interest per year, compounded
monthly. His monthly property tax payment will be
approximately $150. What is the maximum amount he can pay
for a house if his disposable monthly income is $2000?
A person wants to buy a home. He has been advised
A worker borrow $3500 for one year from a friend at
an interest rate of 1.5% per month instead of taking a loan
from a bank at a rate of 18% per year. Compare how much
money the worker will save or lose on the transaction.
An instrument can be bought for $10,000 cash or for
d)
$2000 down and payments of $750 per year for 15 years.
What is the annual interest rate for the time payments? (Hint:
you can assume interest rate between 4 and 5 % )
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