Time remaining:
find out how much of a monthly mortgage his wife and him can afford?

Business & Finance
Tutor: None Selected Time limit: 0 Hours

1. Kanye and his wife, Kim, both work and have a combined gross income of $165,000 per year.   They estimate the property taxes on their condo will be $2,100 and insurance would be about $1,500 per year.  Kim has a car payment of $200 per month and they are both still paying off student loans for a combined total of $600 per month.  

a. Suppose the couple can get a 30 year loan with a rate of 3.5%, how much house could they afford based on the payment you found in part a?

 

Apr 13th, 2015
Income 165000 yearly
Tax 2100 yearly
Insurance 1500 yearly
   
Income 13750 monthly
Tax 175 monthly
Insurance 125 monthly
car payment 200 monthly
Student loan 600 monthly
TOTAL expenditure 1100 monthly
Income at disposal 12650 monthly
EMI =P*r*(1+r)^n / ((1+r)^n-1)
i 0.29167%  
P =EMI*(1-(1+r)^-n)/r  
P(@ 50% disposable income as EMI) $2,928,597  
P(@ 20% disposable income as EMI) $1,171,439  
P(@ 30% disposable income as EMI) $1,757,158  
P(@ 40% disposable income as EMI) $2,342,878  
P(@ 60% disposable income as EMI) $3,514,316  
P(@ 10% disposable income as EMI) $585,719  
P(@ 70% disposable income as EMI) $4,100,036  


Apr 13th, 2015

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Apr 13th, 2015
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Apr 13th, 2015
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