Answered

Westonci.ca is the premier destination for reliable answers to your questions, brought to you by a community of experts. Get immediate and reliable solutions to your questions from a community of experienced experts on our Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

Kathy wants to buy a condominium selling for $96,000. The taxes on the property are $1300 per year, and homeowners' insurance is $336 per year. Kathy's gross monthly income is $4000. She haher van. The bank is requiring 20% down and is charging a 9.5% interest rate with no points. Her bank will approve a loan that has a total monthly mortgage payment of principal, interest, property tthan or equal to 28% of her adjusted monthly income. Complete parts a) through h) below.a) Determine the required down payment.The required down payment is $b) Determine 28% of her adjusted monthly income.28% of her adjusted monthly income is $(Round to the nearest cent as needed.)c) Determine the monthly payments of principal and interest for a 25-year loan.The monthly payment of principal and interest for a 25-year loan is $(Round to the nearest cent as needed.)d) Determine her monthly payment, including homeowners' insurance and taxes.Her total monthly payment, including homeowners' insurance and taxes is $(Round to the nearest cent needed.) Does Kathy qualify for the loan?0 YesO No

Sagot :

a) the cost of the house is 96000 and the down paidment is the 20% so we can use a rule of 3 to solve it so:

[tex]\begin{gathered} 96000\to100 \\ x\to20 \end{gathered}[/tex]

so the equation will be:

[tex]\begin{gathered} x=\frac{96000\cdot20}{100} \\ x=19200 \end{gathered}[/tex]

b) her income is $4000 so the 28% will be:

[tex]\begin{gathered} 4000\to100 \\ x\to28 \end{gathered}[/tex]

so the equation will be:

[tex]\begin{gathered} x=\frac{4000\cdot28}{100} \\ x=1120 \end{gathered}[/tex]

c) the equation that models a loan is:

[tex]C=\frac{P\cdot(0.095\cdot(1+0.095)^n)}{(1+0.095)^{25}-1}[/tex]

So we replace the princeiple and find monthly paidment.

[tex]\begin{gathered} C=\frac{76800\cdot(0.095\cdot(1.095)^{25}}{8.67} \\ C=\frac{76800\cdot0.92}{8.67} \\ C=\frac{70540.30}{8.67} \\ C=8136.14 \\ C\approx8136 \end{gathered}[/tex]

d)The total monthly paidment will be:

[tex]\begin{gathered} T=8136+\frac{1300}{12}+\frac{336}{12} \\ T=8136+108.33+28 \\ T=8272.33 \\ T\approx8272 \end{gathered}[/tex]

SOo the answer is NO she can't afort to buy this house

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.