Joanna earns a gross annual income of $72,456 and is buying a home for $137,000. she is making a 20%
down payment and financing the rest with a 25-year loan at 5.0% interest.

Joanna earns a gross annual income of $72,456

The value of home is $137,000

She makes 20% down payment of home value.

Down Payment = 20% of $137,000

Amount for down payment = 0.20 x 137000

                                             = $27,400

Amount for loan = Home value - Down Payment

                           = 137000 - 27400

                           = $109,600

Financing the rest amount for 25-year at 5% interest.

Monthly Payment for $1000 = $5.846

Monthly Payment for $1       = $0.005846

Monthly Payment for $109,600 = 109600 x 0.005846

                                                    = $640.72

(A) The mortgage amount she will borrow is $109,600

(B) Yearly gross income = $27,456

      Monthly Gross income = $2,288

      Monthly Mortgage Payment = $640.72

As we can see monthly payment is less than monthly income. Therefore, Yes, she can afford the loan.

( C) Monthly Mortgage Payment = $640.72

a

step-by-step explanation: