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Setler [38]
3 years ago
10

Marcus can afford a monthly mortgage payment of $900. If he is eligible for a 30-year, 5% mortgage (where the mortgage factor is

5.37), how much of a mortgage loan can he afford?a. $324,000.00
b. $150,000
c. $167,597.77
d. $200,100.75
e. $510,015.00
Business
1 answer:
tigry1 [53]3 years ago
7 0

Answer:

option (c)  $167,597.77

Explanation:

Data provided in the question:

Monthly mortgage payment = $900

Duration of loan, n = 30 years = 360 months

Interest rate = 5%

Monthly rate of interest = 5% ÷ 12 = 0.4167% = 0.004167

Now,

Mortgage loan can he afford

= Monthly mortgage payment × [ (1 - ((1 + r)ⁿ)⁻¹ ) ÷ r ]

= $900 × [ (1 - ((1 + 0.004167)³⁶⁰)⁻¹ ) ÷ 0.05 ]

= $167,597.77

Hence,

The answer is option (c)  $167,597.77

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4 years ago
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​Let's assume that a carpenter borrowed ​$2 comma 000 to be paid off in a year to finance a machine that would make him work fas
Hoochie [10]

Answer:

The carpenter earned an extra $100.

Explanation:

Since this problem deals with a one-year loan with an yearly interest rate, it can be treated as a simple interest problem. For simple interests, the final value (Vf) can be found by multiplying the initial value (Vi) by one plus the interest rate (i) as shown below:

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To find how much extra money the carpenter made in the first year, one should subtract the final value of loan from the $2,000 dollars down payment plus the extra $400 he collected for the year

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