## Question

# The Giovonis' monthly income is $9000. The have 14 remaining payments of $269 on a new car and 16 payments of $70 remaining on their

The Giovonis' monthly income is $9000. The have 14 remaining payments of $269 on a new car and 16 payments of $70 remaining on their living room furniture. The taxes and insurance on the house are $150 per month. They want a 25-year, $262,000 mortgage at 10% APR. Assume no down payment.

a. (4 pts) What is the total monthly mortgage payment including taxes and insurance?

b. (4 pts) Do they qualify for the mortgage?

c. (2 pts) What is the total of the monthly payments over the course of the loan?

d. (2 pts) How much of the total monthly payments is interest?

e. (4 pts) How much of the first monthly payment is applied to the principal

## Step by Step Solution

There are 3 Steps involved in it

### Step: 1

a Total Monthly Mortgage Payment Including Taxes and Insurance First calculate the monthly mortgage payment using the formula for a fixedrate mortgage ...### Get Instant Access to Expert-Tailored Solutions

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### Step: 2

### Step: 3

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