Question

Fatima has saved $15,000 toward a down payment on a house. She makes $5,375 a month. What is the maximum loan she can take on a house?
Don't you take the $5,375 a month, multiply it by 12, then multiply that answer by 2?
$5,375 x 12 = $64,500 x 2 = $129,000

Answer 1

Answer:

just use this formula and plug in your numbers from the question.

Maximum Loan for a house= $129,000

monthly pay * 12. So $5,375*12=$64,000.

$64,000*2=$129,000.

Maximum spent on a House=$144,000

$129,000+ $15,000= $144,000

Step-by-step explanation:

Rule from the lesson:

Maximum loan for a House = 2(Annual Gross pay) , that is 2*your annual gross pay.

Maximum spent on a House= Maximum Loan + Down Payment

Answer 2

If you want to find the loan for 2 years then you are right.Moreover in most of the cases you need t pay the interest too.But in this cases interest rate is not mentioned.