Duane Miller wants to know what price home he can afford.His annual gross income is $60,000.He has no other debt expenses and expects property taxes and insurance to cost $400 per month.He knows he can get a 6%,15 year mortgage so his mortgage payment factor is 8.43.He expects to make a 10% down payment.What is Duane's affordable home purchase price? Round your answer to the nearest $100.

Question

Quizplus · Accepted Answer

60,000 / 12 = 5,000; 5,000 F1F1F1S1F1F1F10 .33 = 1,650; 1,650 F1F1F1S1F1F1F10 400 = 1,250; 1,250 / 8.43 F1F1F1S1F1F1F10 1,000 = 148,279.95; 148,279.95 / (1 F1F1F1S1F1F1F10 .10) = 164,755.50 = $164,800 rounded.

Duane Miller Wants to Know What Price Home He Can