Question

Sheila Little's gross monthly income is $5000. She has 15 remaining payments of $152 on a used car. The taxes and insurance on the house are $100 per month. What maximum monthly payment does the bank's loan officer feel that Sheila can afford?

Answer 1

A Percentage of $4748

Step-by-step explanation:

If Sheila has remaining payments of $152 for a car and she also spends $100 per month for taxes and insurance, at the end of the month she will have

$5000 - $152 - $100 = $4748

Therefore, depending on the politic of the bank's loan officer, the maximum monthly payment will be a percentage of $4748.