You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of
the loan value You have an annual salary of $36,000, and the bank is willing to allow your monthly mortgage payment to be equal to 28% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (.5% per month) for a 30-year fixed rate loan. How much can you offer for the house? $140,105
$154,501
$160,105
$162,017
<span>4x−15y=−43.................y = 4x/15+43/15 </span><span>2x−3y=−2..................... y = 2x/3+2/3 </span> Using a Graphing tool, we can check that the solution is (5.5 , 4.333) which is the intersection of both lines.