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please I need help on the last 3 quetions. i plug in and it is wrong. how do I do this problem? Warning! You can
please I need help on the last 3 quetions. i plug in and it is wrong. how do I do this problem?
Warning! You can submit answers to make sure they are correct before proceeding to the next. It is a good idea to also keep a written account of the given values (e.g. original price of the house, annual interest rate, etc.) as you will be asked to refer back to these values as you go. Once you have "submitted" an answer to a question, you can click back and forth between the parts if you need to, though you may need to click on "Reattempt this question" at the top of the page. Don't worry, your correct answers will be saved! Round all of your answers to the nearest cent when appropriate to do so. Some questions are programmed to allow for slight variations in the answers due to rounding errors, BUT it is important that you don't round values you are using in formulas, Only round your final answers. Part 1 hs Assume that you have found a home for sale and have agreed to a purchase price of $222300 Down Payment: Assume that you are going to make a 10% down payment on the house, Determine the amount of your down payment and the balance to finance. Down Payment = $ 22230 Loan Amount = $ 200070 Monthly Payment: Calculate the monthly payment for a 30 year loan (rounding to the nearest cent. so rounding to two decimal places). For the 30 year loan use an annual interest rate of 4.69 %. First express the annual interest rate as a decimal. The annual interest rate expressed as a decimal is 0.0469 Now use the loan formula to find the monthly payment, d. The loan formula solved for dis: Now use the loan formula to find the monthly payment, d. The loan formula solved for dis: d= PoC) (1-(1 + ) M) Po is the original loan amount r is the annual interest rate in decimal form. k is the number of compounding periods in one year (so k = N is the length of the loan in years, 12). ) Monthly Payment:d = $1,036 44 nt Assuming you make the monthly payment each month for 30 years, what will be the total am repaid? Total payments = $ 373,110.40 Find the total amount of interest paid over the 30 years. To do so, subtract the amount originally borrowed from the total payments. Total interest paid = $ 173,048.40 Calculate your Income: As already mentioned, these payments are for principal and interest only You will also have monthly payments for home insurance and property taxes, but for this lab you will ignore those. addition, it is necessary to have income leftover for other expenses like electricity, water, food, and other bills. As a wise home owner, you decide that your monthly principal and interest payment should not exceed 35% of your monthly take home pay so that you have plenty left over for those other expenses. What minimum monthly take-home pay (i.e. your monthly pay checks after taxes) should you earn in order to meet this goal? In other words, 35% of what monthly take-home pay is equal to your mortgage payment? Minimum monthly take-home pay = 8 It is also important to note that your net or take home pay (after taxes) is less than your gross pay (before taxes). Assuming that your net pay is 73% of your gross pay, use your monthly take-home pay to find the minimum gross monthly salary will you need to afford this house. Minimum monthly gross pay = $ Now find the minimum annual gross pay you will need to afford this house, Minimum annual gross pay = $ Step by Step Solution
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