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
When the United States gets stuck over a controversial issue—usually something a divided Congress ca
How to solve two inequalities at once (Part 2)
How to solve inequalities involving absolute values (Part 2)
How to solve word problems with two unknowns (Question 2)
Chemistry Problem Worked Out
Gravitational Potential Energy for the Earth problem