you have just been approved for a 30 year 6.0% fixed home mortgage. the monthly payment that you qualify for…

you have just been approved for a 30 year 6.0% fixed home mortgage. the monthly payment that you qualify for is $1112.10. use the table provided to determine the price of a home that can be purchased. round your answer to the nearest cent.\nmonthly payments per $1000 of mortgage\ninterest rate (%) 10 years 20 years 30 years 40 years\n5.0 10.61 6.60 5.37 4.83\n5.5 10.86 6.88 5.68 5.16\n6.0 11.11 7.17 6.00 5.51\n6.5 11.36 7.46 6.33 5.86\na. $183,147 c. $185,350\nb. $184,789 d. $186,523

you have just been approved for a 30 year 6.0% fixed home mortgage. the monthly payment that you qualify for is $1112.10. use the table provided to determine the price of a home that can be purchased. round your answer to the nearest cent.\nmonthly payments per $1000 of mortgage\ninterest rate (%) 10 years 20 years 30 years 40 years\n5.0 10.61 6.60 5.37 4.83\n5.5 10.86 6.88 5.68 5.16\n6.0 11.11 7.17 6.00 5.51\n6.5 11.36 7.46 6.33 5.86\na. $183,147 c. $185,350\nb. $184,789 d. $186,523

Answer

Explanation:

Step1: Find the monthly payment per $1000

From the table, for a 30 - year mortgage with an interest rate of 6.0%, the monthly payment per $1000 is $6.00.

Step2: Calculate the number of $1000 units

Let (n) be the number of $1000 units. We know that the monthly payment (M = 6n) (since payment per $1000 is $6). Given (M=$1112.10), then (n=\frac{1112.10}{6}). [n=\frac{1112.10}{6}=185.35]

Step3: Calculate the home price

The home price (P = 1000n). Substitute (n = 185.35) into the formula. [P=1000\times185.35=$185350]

Answer:

C. $185,350