Description	Use the information below to answer the questions.
Instructions	You have just graduated from ACME State with a degree in Diesel Technology. Your new job takes you to Toledo, Ohio. You are now earning $35,000 per year. Your take home pay is 70% of that gross total. You are anxious to purchase a home. You have the following monthly expenses: Food $275 Utilities $145 Phone $75 Medical $30 Insurance $130 (including auto, health and life) Clothing $70 Student loan payment $145 VISA payment $65 MasterCard Payment $48 Car payment $211 Miscellaneous $100 Total $_______
Multiple Attempts	This test allows 3 attempts. This is attempt number 1.
Force Completion	This test can be saved and resumed later.

QUESTION 1

First calculate your monthly take-home pay. Next, add up the budgeted monthly expenses shown above. How much remains for a monthly mortgage PITI payment (PITI = principal, interest, taxes, insurance)?

		$2,041.67
		$1,622,67
		$2,916.67
		$747.67

1 points

B)

Assume that taxes and insurance (T&I) amount to $70 per month. How much remains to pay monthly mortgage principal and interest (P&I)? (Hint: Use your answer from the previous question)

		$677.67
		$1,552.67
		$1,971.67
		$795.67

1 points

C)

Using the answer to the above question calculate the size of the mortgage loan you could obtain. Assume a 30-year loan at 7 percent annual interest.

		$112,380.46
		$101,858.93 mortgage
		$119,494.52
		$131,497.99

1 points

D)

Using the answer from the above question, and assuming you have 10 percent of the purchase price, what is the most you could pay for a home?

		$101,858.93
		$126,666,67
		$134,444.44
		$113,176.59

1 points

E)

Assuming you do not pay the mortgage off early, how much interest will you pay the lender over the life of the 30 year loan if you payment is $677.67 per month and the mortgage loan was for $107,460?

		$134,587.94
		$125,682.57
		$140,520.60
		$136,501.20