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Fatima has saved $15,000 toward a down payment on a house. She makes $5,375 a month. What is the maximum loan she can take on a house?

Don't you take the $5,375 a month, multiply it by 12, then multiply that answer by 2?

$5,375 x 12 = $64,500 x 2 = $129,000

Verified Answer :

If you want to find the loan for 2 years then you are right.Moreover in most of the cases you need t pay the interest too.But in this cases interest rate is not mentioned.

purpleninja614

Answer:

just use this formula and plug in your numbers from the question.

Maximum Loan for a house= $129,000

monthly pay * 12. So $5,37512=$64,000.

$64,0002=$129,000.

Maximum spent on a House=$144,000

$129,000+ $15,000= $144,000

Step-by-step explanation:

Rule from the lesson:

Maximum loan for a House = 2(Annual Gross pay) , that is 2*your annual gross pay.

Maximum spent on a House= Maximum Loan + Down Payment

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