Question

A couple purchasing a home budget $1,400 per month for their
loan payment. If they have $17,000 available for a down payment and
are considering a 25-year loan, how much can they spend on the home
at each of the following rates? (Round your answers to the nearest
cent.)

(a) 6.3% compounded monthly

$

(b) 7.2% compounded monthly

$

Answer #1

A couple purchasing a home budget $1600 per month for their loan
payment. If they have $19,000 available for a down payment and are
considering a 25-year loan, how much can they spend on the home at
each of the following rates? (Round your answers to the nearest
cent.)
(a) 6.4% compounded monthly
$
(b) 7.1% compounded monthly
$

A couple wishes to borrow money using the equity in their home
for collateral. A loan company will loan them up to 70% of their
equity. They puchased their home 13 years ago for $69 comma 691.
The home was financed by paying 15% down and signing a 30-year
mortgage at 8.4% on the unpaid balance. Equal monthly payments
were made to amortize the loan over the 30-year period. The net
market value of the house is now $100,000. After...

1. A homeowner planning a kitchen remodeling can afford a $800
monthly payment. How much can the homeowner borrow for 3 years at
6%, compounded monthly, and still stay within the budget? (Round
your answer to the nearest cent.)
2. The problem describes a debt to be amortized. (Round your
answers to the nearest cent.)
A man buys a house for $380,000. He makes a $150,000 down payment
and amortizes the rest of the purchase price with semiannual
payments over...

If you invest $96 per month (starting next month) every month
for 36 years, and you can earn 11% per year (compounded monthly),
how much will you have at the end of 36 years? Round to the nearest
cent.
If the most you can afford each month on a car payment is $393,
the applicable discount rate is 4.1% per year, and an auto-loan is
for 5 years paid monthly, what's the most expensive car you should
purchase today assuming...

PV AND LOAN ELIGIBILITY
You have saved $4,000 for a down payment on a new car. The
largest monthly payment you can afford is $350. The loan will have
a 8% APR based on end-of-month payments.
What is the most expensive car you can afford if you finance it
for 48 months? Do not round intermediate calculations. Round your
answer to the nearest cent.
$
What is the most expensive car you can afford if you finance it
for 60...

PV AND LOAN ELIGIBILITY
You have saved $5,000 for a down payment on a new car. The
largest monthly payment you can afford is $400. The loan will have
a 8% APR based on end-of-month payments.
What is the most expensive car you can afford if you finance it
for 48 months? Do not round intermediate calculations. Round your
answer to the nearest cent.
What is the most expensive car you can afford if you finance it
for 60 months?...

10.
PV AND LOAN ELIGIBILITY
You have saved $5,000 for a down payment on a new car. The
largest monthly payment you can afford is $500. The loan will have
a 9% APR based on end-of-month payments.
What is the most expensive car you can afford if you finance it
for 48 months? Do not round intermediate calculations. Round your
answer to the nearest cent.
$
What is the most expensive car you can afford if you finance it
for...

A couple who borrow $60,000 for 30 years at 7.2%, compounded
monthly, must make monthly payments of $407.27. (Round your answers
to the nearest cent.)
(a) Find their unpaid balance after 1 year.
(b) During that first year, how much interest do they
pay?

Problem 5.26
PV AND LOAN ELIGIBILITY
You have saved $3,000 for a down payment on a new car. The
largest monthly payment you can afford is $400. The loan will have
a 8% APR based on end-of-month payments.
a. What is the most expensive car you can afford if you finance
it for 48 months? Do not round intermediate calculations. Round
your answer to the nearest cent.
b. What is the most expensive car you can afford if you finance...

After purchasing a car, Eleanor adjusts her budget to cover most
car-related expenses that may occur. The monthly payment for her
loan is $252.77, the cost of car insurance for 6 months is $688.71,
the estimated fuel cost per month is $170, and she wants to set
aside $800 per year for repairs and other maintenance. How much
should Eleanor budget per month for car expenses? Round your answer
to the nearest cent.

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