CHAPTER 10 Test 655 a car, $175 for new furniture, and $210 on a college education loan. Their bank will approve a loan that has a total monthly house payment of principal, interest, property taxes, and homeowners’ insurance that is less than or equal to 28% of their adjusted monthly income. 12. What is the required down payment? $32,250 13. Determine the amount paid for points. $3655 14. Determine 28% of their adjusted monthly income. $2694.53 15. Determine the monthly payments of principal and interest for a 30-year loan. $1037.63 16. Determine their total monthly payments, including homeowners’ insurance and taxes. $1341.80 17. Do the Leungs meet the requirements for the mortgage? Yes 18. a) Determine the total cost of the house (excluding homeowners’ insurance and taxes) after 30 years. $409,451.80 b) How much of the total cost is interest, including points? $194,451.80 19. Saving for Musical Instruments To raise money to buy new musical instruments, the rock band White Noise Reverie decides to invest $400 monthly in an ordinary annuity with a 3% interest rate compounded monthly. Determine the accumulated amount in the band’s annuity after 5 years. $25,858.69 20. Saving for a New Car Elisa is a freshman in high school and would like to have $15,000 in 4 years to buy a car for college. How much should she invest monthly in a sinking fund with a 6% interest rate compounded monthly to accumulate $15,000 in 4 years? $277.28
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