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Svetradugi [14.3K]

3 years ago

9

Emma and Max want to buy a house together.

1 answer:

Alex3 years ago

6 0

Answer:

£123,000

Step-by-step explanation:

Their combined income is ...

£18,500 +22,500 = £41,000

They can borrow 3 times this amount, or ...

3 × £41,000 = £123,000

__

<em>Comment on this transaction</em>

The required deposit is 5% of 130,000 = 6,500, which is more than their savings. After this down payment is made, the remaining value is £123,500, which exceeds their borrowing power. It appears that Emma and Max need to find a house with a lower price.

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