Question

You have just been approved for a 30 year 5.5% fixed home mortgage. The monthly payment that you qualify for is $532.10. Use the table provided to determine the price of a home that can be purchased. Round your answer to the nearest cent.

Answer 1

The price of a home that can be purchased is $ 95,358.42

Explanation:

Given : You have just been approved for a 30 year 5.5% fixed home mortgage. The monthly payment that you qualify for is $532.10.

We have to determine the price of a home that can be purchased.

Let the Price of home that can be purchased is $ x

Then ,

Mortgage value = $ x

From given table,

For a 30 year 5.5% fixed home mortgage,

Monthly payment of 5.58 is made per $ 1000 That is
`(5.58)/(1000)`

Thus, For x mortgage value the monthly payment given is $532.10.

Thus,

`x*(5.58)/(1000)=532.10`

Simplify for x, we have,

`x=532.10*(1000)/(5.58)`

x = 95358.4229391

Thus, Rounding to the nearest cent , we get the price of a home that can be purchased is $ 95,358.42

Answer 2

$93,679.58

Explanation:

You have just been approved for a 30 year 5.5% fixed home mortgage.

Your monthly payment for mortgage = $532.10

As per given table on $1000 of mortgage at 5.5% for 30 years the monthly payment would be = $5.68

Let the mortgage value of the home = x

monthly payment is 5.68 per $1000 of mortgage =
`(5.68)/(1000)`

If the monthly payment is $532.10 on x amount of mortgage, the amount of mortgage would be =

`x*(5.68)/(1000)=532.10`

`x=(1000)/(5.68)* 532.10`

`x=176.056338* 532.10`

= $93,679.5774 ≈ $93,679.58

The mortgaged price of the home would be $93,679.58