Question
Tina, one of your clients, has found a house she wants to purchase but is not sure she can afford the monthly mortgage payment. The
Tina, one of your clients, has found a house she wants to purchase but is not sure she can afford the monthly mortgage payment. The most Tina can afford is $1,500 each month. Tina tells you the interest rate on the loan will be 4%, the amount of the loan will be $200,000, and the term of the loan will be 15 years. Based on these facts, will Tina be able to stay within her $1,500 budget? Hint: Use the General Calculators, loan, amortizing loan areas under the TOOLS section of Checkpoint. a. No, the monthly payment is $2,024.90. b. Yes, the monthly payment is $954.83. c. No, the monthly payment is $1,687.71. d. Yes, the monthly payment is $1,479.38. e. None of the above.
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