Suppose that you have a job that has an annual salary of $$55,000.$ You decide that you

want to buy a house. Answer the following exercises. Show your work. Please write

legibly. Use complete sentences, spelling, and punctuation. When necessary, round to

the nearest cent.

Given your annual salary, what is your monthly income? Show your work.

You already have an auto loan for a new vehicle so that you can travel back and forth to work. There are $18$

remaining monthly payments of $$292$ on your auto loan.

Given your monthly income and your remaining auto loan payments, what is the maximum monthly house

payment you can afford? Show your work.

Explain why your answer to #$2$ is reasonable.

After shopping around, you have your heart set on a house for sale with a $$151,000$ list price. After

negotiations, the seller agreed to sell the house for $$145,000.$ Based on the previous year's tax history, the

annual taxes on the property are approximately $$1,172.$

What are the monthly property taxes for the house? Show your work.

Assume that the homeowner's insurance is $1\%$ of the house selling price per year. What is the yearly

homeowner's insurance for the house? Show your work.

What is the monthly homeowner's insurance for the house? Show your work.

After reviewing your bank's website, you discover that they offer a conventional loan with a $15\%$ down

payment. If approved, you could have a $3\mathrm{.}5\%$ interest rate for a $30$ year mortgage. You decide to take some

time to consider the terms before gathering the information your bank requests to apply for a mortgage.

How much is the down payment for the house? Show your work.

How much of the house selling price will be mortgaged? Show your work.

What is the monthly principal and interest payment for the mortgage? Show your work