Answered: how much can they spend

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how much can they spend

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter5: Making Automobile And Housing Decisions

Section: Chapter Questions

Problem 8FPE

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Concept explainers

Factors Affecting Housing Decision

Question

A couple purchasing a home budget $1,800 per month for their loan payment. If they have $25,000 available for a down payment and are considering a 25-year loan, how much can they spend on the home at each of the following rates? (Round your answers to the nearest cent.)

1) 6.3% compounded monthly

2) 7.2% compounded monthly

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