The Potters want to buy a small cottage costing $119,000 with annual insurance and taxes of $760 and $2900, respectively. They have saved $11,000 for a down payment, and they can get a 6%, 10-year mortgage from a bank They are qualified for a home loan as long as the total monthly payment does not exceed $1000. Are they qualified? What is the total monthly payment?
The Potters want to buy a small cottage costing $119,000 with annual insurance and taxes of $760 and $2900, respectively. They have saved $11,000 for a down payment, and they can get a 6%, 10-year mortgage from a bank They are qualified for a home loan as long as the total monthly payment does not exceed $1000. Are they qualified? What is the total monthly payment?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The Potters want to buy a small cottage costing $119,000 with annual insurance and taxes of $760 and $2900, respectively. They have saved $11,000 for a down payment, and they can get a 6%, 10-year mortgage from a bank They are qualified for a home loan as long as the total monthly payment does not exceed $1000.
Are they qualified?
What is the total monthly payment?
Transcribed Image Text:Real Estate Amortization Table
,C
Real Estate Amortization Table (Principal and Interest per Thousand Dollars Borrowed)
Terms
in Years
10
15
20
25
30
4% 41% 5%
10.12 10.36 10.61
7.40
7.65
7.91
6.06
6.33
6.60
5.28
5.56
5.85
4.77
5.07
5.37
1
52% 6% 67% 7% 71%
10.85 11.10 11.35 11.62 11.88
8.44 8.71
8.17
8.99
9.28
6.88
7.16 7.46
7.76
8.06
6.14
6.44
6.75
7.07
7.39
5.68
6.00
6.32 6.65 7.00
Print
5
W
Done
Terms
8% in Years
12.14
9.56
8.37
7.72
7.34
10
15
20
25
30
0
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