Math  /  Data & Statistics

Question2. Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation (Figure 9.1.4 Mortgage Affordability Calculation).
Monthly gross income, \$4,167 Down payment to be made-15 percent of purchase price
Other debt (monthly payment), \$500 Monthly Property Taxes and Home Insurance, \$200 30-year loan at 8 percent a. Affordable monthly mortgage payment b. Affordable mortgage amount c. Affordable home purchase

Studdy Solution
Calculate the affordable home purchase price by adding the down payment to the affordable mortgage amount. The down payment is 15% of the purchase price.
Let x x be the purchase price, then:
0.85x=P 0.85x = P
x=P0.85 x = \frac{P}{0.85}
Calculate x x .
The affordable monthly mortgage payment is approximately \$800.12, the affordable mortgage amount is calculated from the formula above, and the affordable home purchase price is derived from the mortgage amount and down payment percentage.

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