Section 11 Homework: Problem 11
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(6 points)
Neal and his wife, Jean, both work and have a combined gross income of $85000 per year. They estimate the property
taxes on their condo will be $1500 and insurance would be about $1040 per year. Neal takes the bus to work, but Jean
has a car payment of $345 per month, and they are both still paying off student loans for a combined total of $220 per
month. Use this information to answer the questions below.
Express your answers rounded correctly to the nearest cent!
() Determine how much of a monthly mortgage Neal and Jean can afford. (Use the Total Expense Ratio from your class
materials.)
Payment = $
(11) If the couple can get a 30-year mortgage with a fixed rate of 8.35%, use Excel's PV function to determine how much
house they could afford
Amount to Borrow = $