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A couple wants to purchase a $ 2 6 0 , 0 0 0 house, and they have the required 2 0 % down payment
A couple wants to purchase a $ house, and they have the required down payment and money for other closing costs. The bank is offering a year mortgage at interest compounded monthly. The couple has annual aftertax income of $ and other debts totaling $ per month. a If the maximum debttoincome ratio total monthly debt divided by aftertax monthly income is can the couple afford to purchase the home? b If the couple lives in the house for years, what is the total amount paid for the house including down payment, principal, and interest?
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