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# Use the following advice from most financial advisors to solve the problem. Spend no more than 28% ...

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Posts: 461
A year ago

Question 1.

The cost of a home is financed with a $260,000, 30-year fixed-rate mortgage at 7%. The buyer will make 360 payments of$1729.00. Prepare a loan amortization schedule for the first three months of the mortgage. Round to the nearest cent.

Question 2.

Use the following advice from most financial advisors to solve the problem.
∙ Spend no more than 28% of your gross monthly income for your mortgage payment.
∙ Spend no more than 36% of your gross monthly income for your total monthly debt.
Round all calculations to the nearest dollar, if necessary.

Suppose that your gross annual income is $96,000. (a) What is the maximum amount you should spend each month on a mortgage payment? (b) What is the maximum amount you should spend each month for total credit obligations? (c) If your monthly mortgage payment is 65% of the maximum amount you can afford, what is the maximum amount you should spend each month for all other debt? ▸ (a)$2240; (b) $2880; (c)$1424

▸ (a) $26,880; (b)$34,560; (c) $17,088 ▸ (a)$2240; (b) $2880; (c)$1456

▸ (a) $2240; (b)$2880; (c) \$368
Textbook

## Thinking Mathematically

Edition: 6th
Author:
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A year ago

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