Reagan wants to buy a condominium for $90,000.The property taxes are $1,200 per year, homeowner's insurance is $800 per year, and the monthly house loan payments would be $434.83.Reagan's gross monthly income is $3335.She has monthly car loan payments of $250, and monthly student loan payments of $200.She has no other loan payments.The bank is requiring a 10% down payment.Her bank will approve the loan if the total of her monthly loan payment, insurance payment, and property taxes are less than 25% of her adjusted monthly income.

11.Determine 25% of Reagan's adjusted monthly income.Assume adjusted monthly income is gross income minus anynon-home related loan payments.

a.$115.40

b.$679.58

c.$721.25

d.$2885

Reagan wants to buy a condominium for $90,000.The property taxes are $1,200 per year, homeowner's insurance is $800 per year, and the monthly house loan payments would be $434.83.Reagan's gross monthly income is $3335.She has monthly car loan payments of $250, and monthly student loan payments of $200.She has no other loan payments.The bank is requiring a 10% down payment.Her bank will approve the loan if the total of her monthly loan payment, insurance payment, and property taxes are less than 25% of her adjusted monthly income.

12.Determine Reagan's total monthly home-related expenses (loan payment, insurance, and taxes) and determine whetherthe bank will approve the loan.

a.Reagan's monthly home-related expenses would be $601.50 and the bank will approve the loan.

b.Reagan's monthly home-related expenses would be $601.50 and the bank willnotapprove the loan.

c.Reagan's monthly home-related expenses would be $2434.83 and the bank will approve the loan.

d.Reagan's monthly home-related expenses would be $2434.83 and the bank willnotapprove the loan.