The johnsons have accumulated a nest egg of $40,000 that theyintend to use as a down payment toward the purchase of a new house.Because their present gross income has placed them in a relativelyhigh tax bracket, they have decided to invest a minimum of$2400/month in monthly payments (to take advantage of the taxdeduction) toward the purchase of their house. However, because ofother financial obligations their monthly payments should notexceed $3000. If local motgage rates are 7.5/year compooundedmonthly for a conventional 30-yaear mortgage, what is the pricerange of houses that they should consider? (DO NOT ANSWER THISQUESTION, PLEASE SEE BELOW)
Refer to the question above. if local mortgage rates were increasedto 8%, how would this affect the price range of houses that thejohnsons could consider?
The johnsons have accumulated a nest egg of $40,000 that theyintend to use as a down payment toward the purchase of a new house.Because their present gross income has placed them in a relativelyhigh tax bracket, they have decided to invest a minimum of$2400/month in monthly payments (to take advantage of the taxdeduction) toward the purchase of their house. However, because ofother financial obligations their monthly payments should notexceed $3000. If local motgage rates are 7.5/year compooundedmonthly for a conventional 30-yaear mortgage, what is the pricerange of houses that they should consider? (DO NOT ANSWER THISQUESTION, PLEASE SEE BELOW)
Refer to the question above. if local mortgage rates were increasedto 8%, how would this affect the price range of houses that thejohnsons could consider?
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