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Mortgage Rates and Interest

Last updated over 4 years ago

7 questions

Instructions

1

3

3

4

3

2

2

Please answer all questions to the best of your ability. Make sure to show all work and explain your thoughts fully. 

Question 1

1.

Question 2

2.

How much would Judy pay in interest on her loan over 30 years? Show all work and circle your final answer.

Question 3

3.

How much money would Bobby have spent at the end of his 30 year mortgage? Hint: First find the interest he would pay. Show all of your work and circle your final answer.

Question 4

4.

What would be Casey's monthly mortgage payment? Hint: First determine how much Casey would end up paying total. Then divide it by the number of times she will have to pay her montly mortgage. Show all of your work and circle your final answer.

Question 5

5.

According to the BrainPOP video on EdPuzzle that you watched, a person should not spend more than 28% of their monthly salary on their mortgage payment. If someone makes $150,000 per year, what would be the most they could spend on a montly mortgage payment? Show all of your work and circle your final answer.

Question 6

6.

What do you notice about the relationship between a person's salary and the loan amount and interest rate they are offered? Your response should be at least two sentences.

Question 7

7.

Based on your answer in #5, why do you think a higher salary affects that? Think about the bank trusting an individual with their money. Your response should be at least 4 sentences.

Which person is getting the best interest rate?

Judy

Casey

Bobby