a public relations specialist earns $78,000 salary each year. he/she wants to spend no more than three times…

a public relations specialist earns $78,000 salary each year. he/she wants to spend no more than three times his/her salary on a house. what is the maximum price of a home that he/she can afford?\nif a 5% down payment is required, what is the amount financed?\nif he/she buys a home for the maximum he/she can afford, what is the monthly mortgage payment for a 20 year fixed interest loan at 3.8% compounded monthly?\nhow much will he/she pay in over the 20 year loan?\nhow much will he/she pay in interest over the 20 year loan?

a public relations specialist earns $78,000 salary each year. he/she wants to spend no more than three times his/her salary on a house. what is the maximum price of a home that he/she can afford?\nif a 5% down payment is required, what is the amount financed?\nif he/she buys a home for the maximum he/she can afford, what is the monthly mortgage payment for a 20 year fixed interest loan at 3.8% compounded monthly?\nhow much will he/she pay in over the 20 year loan?\nhow much will he/she pay in interest over the 20 year loan?

Answer

Explanation:

Step1: Find total payment

Total payment = Monthly payment × Number of months. Number of months = 20×12 = 240. Monthly payment = $1,324.91. Total payment = (1,324.91\times240)

Step2: Find amount financed

Amount financed = $222,300.

Step3: Calculate interest

Interest = Total payment - Amount financed. Total payment = (1,324.91\times240 = 317,978.4) Interest = (317,978.4 - 222,300)

Answer:

$95,678.40