A podiatrist is considering purchasing a new office building with a 25-year, $420,000 mortgage at 8% interest. The podiatrist can afford a monthly mortgage payment of $3200. Can the podiatrist afford the monthly mortgage payment on the new office building?

Question

Quizplus · Accepted Answer

To determine if the podiatrist can afford the monthly mortgage payment, we need to calculate the monthly payment on the mortgage using the loan amount ($420,000), interest rate (8%), and loan term (25 years). This can be done using a mortgage calculator or a financial formula. The monthly payment on the mortgage is approximately $3,196. Since this is less than the podiatrist's affordable monthly payment of $3,200, the podiatrist can afford the monthly mortgage payment on the new office building. Therefore, the answer is choice B.

A Podiatrist Is Considering Purchasing a New Office Building with a 25-Year