HomeworkLib
Question

You have an annual salary of $72,000 and the bank is willing to allow your monthly...

You have an annual salary of $72,000 and the bank is willing to allow your monthly mortgage payment to be equal to 29% of your monthly income.The interest rate on the loan is 6% per year with monthly compounding for a 30 year fixed rate loan. What is the maximum amount you can borrow from the bank?

A) 258,925

B) 277,499

C) 280,210

D) 290,217

E) 491,075

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

ssweR Equated Monthly ρο Loon Amount ment at九. 12. Noul, wk can comput Maximum Loan Amau) uin above FoRMULA 0.29 Monthly Inco

0 0
Add a comment
Know the answer?
Add Answer to:
You have an annual salary of $72,000 and the bank is willing to allow your monthly...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • You are ready to buy a house, and you have $20,000 for a down payment and...

    You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. You have an annual salary of $36,000, and the bank is willing to allow your monthly mortgage payment to be equal to 28% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (.5% per month) for a 30-year fixed rate loan. How much...

  • You are ready to buy a house, and you have $20,000 for a down payment and...

    You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. You have an annual salary of $48000 (monthly income $4000) , and the bank is willing to allow your monthly mortgage payment to be equal to 25% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (.5% per month) for a 30-year fixed...

  • 1 points Sve Arwer You are ready to buy a house, and you have $20,000 for...

    1 points Sve Arwer You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. You have an annual salary of $36,000 (monthly income $3000). and the bank is willing to allow your monthly mortgage payment to be equal to 25% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (5% per month) for...

  • Need help with these problems Chapter 5 1. What is the Present value of the following...

    Need help with these problems Chapter 5 1. What is the Present value of the following cash flows? Period Cash Flow 500 750 500 -250 4 Given a discount rate of 7.5% what is the PV of these cash flows? 2. You are ready to buy a house and you have $25,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. You have an annual salary of $40,000. The bank is...

  • Assume that you have a 30 year fully-amortized fixed rate mortgage for your home. Your loan...

    Assume that you have a 30 year fully-amortized fixed rate mortgage for your home. Your loan amount is $300,000 with a 3% annual interest rate. After 28 years, you would like to sell the property. What is your loan balance at the end of 28 years? Assume that you have a 30 year fully-amortized fixed rate mortgage for your home. Your loan amount is $300,000 with a 3% annual interest rate and your balloon payment is $50,000. What is your...

  • You need $300,000 to buy a house. You decide to borrow money from the bank to...

    You need $300,000 to buy a house. You decide to borrow money from the bank to finance your mortgage. Assume that the bank charges a fixed annual interest rate of 4.50 percent and the term of the loan is 30 years. If you are required to make an equal payment every year for 30 years to pay off the loan, what is the annual payment? (Note that banks typically require monthly mortgage payments. For this problem, however, lets assume for...

  • You purchase a home and need to borrow $350,000. The bank is offering a 30-year loan...

    You purchase a home and need to borrow $350,000. The bank is offering a 30-year loan that requires monthly payments and has a stated interest rate of 9% per year. What is your monthly mortgage payment? Now suppose that you can only afford to pay $2,500 per month. The bank agrees to allow you to pay this amount each month, yet still borrow the original amount. At the end of the mortgage in 30 years, you must make a balloon...

  • Your monthly mortgage payment (principal plus interest) is $1,750 . If you have a 30-year loan...

    Your monthly mortgage payment (principal plus interest) is $1,750 . If you have a 30-year loan with a fixed interest rate of 0.3% per month, how much did you borrow from the bank to purchase your house (rounded to the nearest whole dollar)? (Do not enter a dollar sign $ with your answer.)

  • Your monthly mortgage payment (principal plus interest) is $1,750 . If you have a 30-year loan...

    Your monthly mortgage payment (principal plus interest) is $1,750 . If you have a 30-year loan with a fixed interest rate of 0.3% per month, how much did you borrow from the bank to purchase your house (rounded to the nearest whole dollar)? (Do not enter a dollar sign $ with your answer.)

  • gross monthly salary

    Suppose you take out a 20-year mortgage for a house that costs $476,114. Assume the following:• The annual interest rate on the mortgage is 5%.• The bank requires a minimum down payment of 13% at the time of theloan.• The annual property tax is 2% of the cost of the house. • The annual homeowner's insurance is 0.8% of the cost of the house.• The monthly PMI is $58• Your other long-term debts require payments of $960 per monthIf you...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT