#2. Your friend and her partner have a combined gross income of $12,132 and monthly expenses totaling $3,105. They plan to buy a house with a mortgage whose monthly PITI will be $2,000. (a) What is your friend and her partner's combined housing expense ratio? (b) What is their total obligations ratio? (c) For what kind of mortgage can they qualify, if any? (d) If they do not qualify for an FHA mortgage, by how much should they reduce their monthly expenses in order to be eligible? (Set up an equation and solve it.)
Equations and Inequations
Equations and inequalities describe the relationship between two mathematical expressions.
Linear Functions
A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.
Problem #2. Your friend and her partner have a combined gross income of $12,132 and monthly expenses totaling $3,105. They plan to buy a house with a mortgage whose monthly PITI will be $2,000.
(a) What is your friend and her partner's combined housing expense ratio?
(b) What is their total obligations ratio?
(c) For what kind of mortgage can they qualify, if any?
(d) If they do not qualify for an FHA mortgage, by how much should they reduce their monthly expenses in order to be eligible? (Set up an equation and solve it.)
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