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Five years after you graduate from MSU, you receive a promotion that increases your salary to $120,000 per year. You have decided to buy a

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Five years after you graduate from MSU, you receive a promotion that increases your salary to $120,000 per year. You have decided to buy a house, so you go to a bank that gives you the following offer on a loan: 9% annual interest, no down payment required, closing costs of 5% of the amount borrowed, 30 year loan with monthly payments, and the amount of the monthly payment cannot exceed 25% of your monthly pre-tax pay. In addition to that maximim amount you can borrow from the bank, you have saved $50,000 that you will put toward the purchase of the house. What is the maximum price that you can afford to pay for the house (hint: you will borrow the maximum amount the bank will allow you to borrow, and add the money you have saved onto that, and you must also pay the closing costs)? Multiple Choice $76,899.93 $310.704.66 10 $345,169.43 $360,704.66 $373739.90 Five years after you graduate from MSU, you receive a promotion that increases your salary to $120,000 per year. You have decided to buy a house, so you go to a bank that gives you the following offer on a loan: 9% annual interest, no down payment required, closing costs of 5% of the amount borrowed, 30 year loan with monthly payments, and the amount of the monthly payment cannot exceed 25% of your monthly pre-tax pay. In addition to that maximim amount you can borrow from the bank, you have saved $50,000 that you will put toward the purchase of the house. What is the maximum price that you can afford to pay for the house (hint: you will borrow the maximum amount the bank will allow you to borrow, and add the money you have saved onto that, and you must also pay the closing costs)? Multiple Choice $76,899.93 $310.704.66 10 $345,169.43 $360,704.66 $373739.90

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