Asked by ariana
A typical family income is $75,000 per year. Family financial experts recommend that mortgage payments not exceed 25% of the family's income. Assuming a current mortgage interest rate of 4.2% compounded monthly for a 30 year mortgage with monthly payments. What is the largest mortgage a family can afford?
Answers
Answered by
oobleck
plug in the numbers in your payment formula, and make sure that the monthly payment is less than .25*75000/12 = $1562.50
Answered by
mathhelper
So they can afford .25(75000) or $18750 per year, or approx. $1562 per month.
present value = 1562(1 - 1.0035^-360)/.0035 = ????
present value = 1562(1 - 1.0035^-360)/.0035 = ????
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.