Questions: 1. You are buying a home for 400,000 with a 10% down payment. The annual interest rate is 6% and the mortgage term is 20 years calculate the monthly mortgage payment Questions 2: create a monthly budget that Includes the mortgage payment, property taxes ( 4,800 annually ), utilities and other personal expenses.Ensure that the total expenses do not go over 3,500 per month

Question

Answer 1

### Question 1:

2,579.04

\

Property Taxes:

400

\

Total:

3,500$

Answer 2

## Step 1: Calculate the Loan Amount### The down payment is

of

400,000

0.10 \times \

40,000

\

40,000 = \

.## Step 2: Calculate the Monthly Interest Rate### The annual interest rate is

. To find the monthly rate, divide by 12:

.## Step 3: Calculate the Number of Payments### The mortgage term is 20 years. Since there are 12 months in a year, the total number of payments is

.## Step 4: Calculate the Monthly Mortgage Payment### Using the formula for monthly mortgage payment:

, where

is the monthly payment,

is the loan amount,

is the monthly interest rate, and

is the number of payments.

360,000 \times \frac{0.005(1+0.005)^{240}}{(1+0.005)^{240} - 1}

M = \

360,000 \times \frac{0.005 \times 3.3102}{3.3102 - 1}

M = \

360,000 \times 0.007164

M \approx \

## Step 5: Create a Monthly Budget### Given a monthly mortgage payment of approximately

2,579.04

\

, and a total monthly expense limit of

3,500

\frac{\

400

\

2,579.04 - \

520.96$ for utilities and other personal expenses.

Question