Neal and his wife, Samantha, both work and have a combined gross income of $90000 per year.
Question:
Neal and his wife, Samantha, both work and have a combined gross income of $90000 per year. They estimate the property taxes on their condo will be $1050 and insurance would be about $1050 per year. Neal takes the bus to work, but Samantha has a car payment of $290 per month, and they are both still paying off student loans for a combined total of $270 per month. Use this information to answer the questions below.
(i) Determine how much of a monthly mortgage Neal and Samantha can afford. (Use the Total Expense Ratio from your class materials.)
Payment = $
(ii) If the couple can get a 30-year mortgage with a fixed rate of 3.35%, use Excel's PV function to determine how much house they could afford
Amount to Borrow = $
Basic Business Statistics Concepts and Applications
ISBN: 978-0134684840
14th edition
Authors: Mark L. Berenson, David M. Levine, Kathryn A. Szabat, David F. Stephan