Home ownership has other expenses, including property taxes, homeowners insurance, and utilities. The annual property tax can be estimated as 1% of the amount borrowed and the annual homeowners insurance can be estimated as 2% of the amount borrowed.

7) For the mortgage of $125,000, find

a. the monthly amount of property tax,

b. the monthly amount of homeowner's insurance.

8) If the monthly utilities can be estimated to be $200, find the total monthly payment including the mortgage, property tax, homeowner's insurance, and utilities for the

a. 15-year term loan,

b. 30-year term loan.

9) Housing expenses are an important part of a personal budget. Use the internet to research what percent of a persons monthly income should be used for housing. If the average monthly income for a Volusia county resident is approximately $2500,

a. Could a typical Volusia county resident afford the home with the 15-year mortgage? Why or why not? b. Could a typical Volusia county resident afford the home with the 30-year mortgage? Why or why not?

10) What other expenses should a person consider for their monthly budget? How might these expenses affect the decision of whether to purchase a home?

1) Assume you have a balance of $1,800 on a credit card. Use the credit card payoff calculator to answer the following questions.

a)If the credit card has an annual interest rate of 13.6% and only the minimum monthly payment of $25 is made, how many months will it take to pay off the credit card?

b)What is the total amount that would be spent to pay off the $1,800 if the monthly payment is $25?

c)If the credit card has an annual interest rate of 13.6%and a monthly payment of $45 is made, how many months will it take to pay off the credit card?

d)What is the total amount that would be spent to pay off the $1,800 if the monthly payment is $45?

e)If the credit card has an annual interest rate of 22% and only the minimum monthly payment of $25 is made, how many months will it take to pay off the credit card?

f)What is the total amount that would be spent to pay off the $1,800 if the monthly payment is $35? 3

g)If the credit card has an annual interest rate of 22% and a monthly payment of $60 is made, how many months will it take to pay off the credit card?

h)What is the total amount that would be spent to pay off the $1,800 if the monthly payment is $60?

3) What are some reasons the interest rates on credit cards vary?

4) What are your opinions on having and using credit cards for your purchases?