# plz help - Calculate the Monthly Mortgage Payment

by Lisa

(MD)

**Budgeting** • Analyze a typical budget

1. Calculate expenses

2. A mortgage payment

3. How interest and financing affect your budget.

• Prepare your budget

(Show all work and identify the each answer with words.)

1. Add the numerical values for the first three letters of your last name, based on each letters position 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.

2. Multiply your sum by 1500. This is your yearly income for Week Four Discussion 1.

3. 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.

4. You also have a yearly educational bill of $7980 which includes textbooks and classes.

5. Calculate your monthly income.

6. What percent of your monthly income is the car payment?

7. 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.

8. 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.

9. 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?

The first three letters of my last name is WHI