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Math Help - Word Problem - Puzzle

HEN is the letters..

Select the first three letters of your last name. Each letter has a numerical place value in the alphabet. For example, D is 4, L is 12, and Z is 26. Add the three place values together. For example, Wallace would yield WAL, which is 23+1+12 = 36.
Multiply your sum by 1500. This is your yearly income for Week Four Discussion 1.
Please use the following monthly expenses: Car payment = $283.15, Car insurance = $72, Utilities (includes water and power) = $242.77, Internet = $32, and Cell Phone = $79.95.
You also have a yearly educational bill of $7980 which includes textbooks and classes.
Calculate your monthly income.
What percent of your monthly income is the car payment?
Subtract the sum of your monthly expenses. Use this value to calculate what percent of your income is now available to spend for food, clothing, and your rent or mortgage.
Use the plan at the bottom of page 454, “Mathematics in Our World Revisited,” to calculate the monthly mortgage payment established by your monthly income.
Assume you can afford a down payment equal to 25% of your yearly income. What is the total purchase price can you afford for a home? Would this amount allow you to purchase a home in the area where you live?

Mathematics in Our World Revisited
How Much Can You Afford to Pay for a Home?
▲
Experts suggest that a person can afford to pay 28% of
his or her gross monthly income for a home mortgage.
Given this assumption and using Table 9-1 on page 435,
you can figure out how much you can afford to pay for a
home, as shown.
First find the monthly income.
$36,000.00 ÷ 12 = $3000.00
Next find 28% of the monthly income.
0.28  $3000.00 = $840.00
Hence you can afford a monthly mortgage payment of
$840.00.
Now to see what you can afford to borrow, look
up the number corresponding to 7% and 25 years in
Table 9-1 on page 435. It is 7.70. Set up an equation and
solve for x.
7.70x = $840
7.70x
7.70
=
840
7.70
x = $109.09
Multiply x by 1000 since the monthly payments in
Table 9-1 are per $1000.00 of the mortgage.
$109.09  1000 = $109,090
Hence, you can afford a mortgage of $109,090.
Finally, add your down payment of $10,000.00.
$109,090.00 + $10,000.00 = $119,090.00
You can purchase a home costing about $119,090.00.
(The process used here is the reverse of the process used
in Example 9-27 in this chapter.)




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Math Help - Word Problem - Puzzle

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Apr 24, 2011
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starstarstarstarstar 		Math Help - Word Problem
by: Math Help - Word Problem

-------------------------------------------------

Part II


The answer:

Select the first three letters of your last name. Add the three place values together.


H (8th letter), E (5th letter), N (14th letter)

8+5+14 = 27

Multiply your sum by 1500.

27 * 1500 = 40500

Yearly income: $40,500

Monthly expenses:

Car payment = $283.15 per month
Car insurance = $72 per month
Utilities (includes water and power) = $242.77 per month
Internet = $32 per month
Cell Phone = $79.95 per month

Yearly educational bill (includes textbooks and classes): $7980
$7980/12 = $665 per month


Calculate your monthly income.

(Yearly income)/(12 months) = $40,500/(12 months) = $3,375 per month


What percent of your monthly income is the car payment?

[(Monthly car payment)/(Monthly income)] * 100 = % car payment

($283.15/$3,375)*100 = 8.39%

The monthly car payment is 8.39% of the monthly income


Subtract the sum of your monthly expenses.

$3,375 per month, monthly income

-$283.15 per month, Car payment
-$72 per month, Car insurance
-$242.77 per month, Utilities (includes water and power)
-$32 per month, Internet
-$79.95 per month, Cell Phone
--------------------------------------
$2,665.13 per month (monthly income after monthly expenses, without educational expenses)

If educational expenses are included:

$2,665.13 per month
-$665 per month, educational expenses
--------------------------------------
$2000.13 per month (monthly income after monthly expenses, including educational expenses)



Calculate what percent of your income is now available to spend for food, clothing, and your rent or mortgage.

[(Monthly income after payments)/(Monthly income)] * 100 = % available

Without including educational expenses

($2,665.13/$3,375)*100 = 78.97%

Available income is 78.97% of the monthly income.


Including educational expenses

($2000.13/$3,375)*100 = 59.26%

Available income is 59.26% of the monthly income.


Assume you can afford a down payment equal to 25% of your yearly income.

$40,500 * .25 = $10,125 down payment


What is the total purchase price you can you afford for a home?

28% of gross monthly income = .28*$3,375 = $945

7.70x = $945

X = $945/7.70 = 122.73

122.73*000 = $122,730

$122,730 + $10,125 = $132,855

Can purchase a home costing about $132,855


Would this amount allow you to purchase a home in the area where you live?

Yes

According to zillow.com, one home is currently for sale in my area (zip code 37501). This is a 1400 sq ft home located at 8911 Macon Rd, Memphis, TN . It is listed with a sale price of $129,900.

http://www.zillow.com/homes/37501_rb/#/homes/for_sale/Memphis-TN-37501/74383_rid/35.009938,-89.919897,34.994928,-89.960366_rect/14_zm/1_fr/


Thanks for writing.


Staff
www.solving-math-problems.com
Apr 24, 2011
Rating
starstarstarstarstar 		Math Help - Word Problem
by: Staff


Part I

The question:

HEN is the letters..

Select the first three letters of your last name. Each letter has a numerical place value in the alphabet. For example, D is 4, L is 12, and Z is 26. Add the three place values together. For example, Wallace would yield WAL, which is 23+1+12 = 36.
Multiply your sum by 1500. This is your yearly income for Week Four Discussion 1.
Please use the following monthly expenses: Car payment = $283.15, Car insurance = $72, Utilities (includes water and power) = $242.77, Internet = $32, and Cell Phone = $79.95.
You also have a yearly educational bill of $7980 which includes textbooks and classes.
Calculate your monthly income.
What percent of your monthly income is the car payment?
Subtract the sum of your monthly expenses. Use this value to calculate what percent of your income is now available to spend for food, clothing, and your rent or mortgage.
Use the plan at the bottom of page 454, “Mathematics in Our World Revisited,” to calculate the monthly mortgage payment established by your monthly income.
Assume you can afford a down payment equal to 25% of your yearly income. What is the total purchase price can you afford for a home? Would this amount allow you to purchase a home in the area where you live?

Mathematics in Our World Revisited
How Much Can You Afford to Pay for a Home?
▲
Experts suggest that a person can afford to pay 28% of his or her gross monthly income for a home mortgage.

Given this assumption and using Table 9-1 on page 435, you can figure out how much you can afford to pay for a home, as shown.

First find the monthly income.

$36,000.00 ÷ 12 = $3000.00

Next find 28% of the monthly income.

0.28 * $3000.00 = $840.00

Hence you can afford a monthly mortgage payment of $840.00.

Now to see what you can afford to borrow, look up the number corresponding to 7% and 25 years in Table 9-1 on page 435. It is 7.70. Set up an equation and solve for x.

7.70x = $840
7.70x/7.70 = 840/7.70
x = $109.09

Multiply x by 1000 since the monthly payments in Table 9-1 are per $1000.00 of the mortgage.

$109.09 *1000 = $109,090

Hence, you can afford a mortgage of $109,090
.
Finally, add your down payment of $10,000.00.

$109,090.00 + $10,000.00 = $119,090.00

You can purchase a home costing about $119,090.00.

(The process used here is the reverse of the process used in Example 9-27 in this chapter.)

-------------------------------------------------

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