# Business Math Unit 5

Topics: Mortgage, Money, Closing Pages: 2 (704 words) Published: May 28, 2013
1.Joe figures that with overtime he will average 40 hours a week for 52 weeks a year. If his current wage is \$15.00 per hour, how much will he make per year? Before taxes Joe will make \$31,200.

2.How much would Joe’s wages be in an average month?
Joe’s wages would average \$2400 per month.
3.Based upon the information in the video, Joe has a car payment of \$249 per month. The average utilities are: Electricity, \$79; Gas, \$49; Water, Sewer, and Trash, \$27. In addition, Joe is saving \$100 per month. How much of his monthly salary would be committed to utilities and other expenses? \$504.00 would be committed to utilities and other expenses.

4.If Joe’s net income after taxes each month is equal to 74% of his gross wages, how much is his net income? \$1776 a month would be Joe’s net income.
5.Joe’s total monthly payment to the bank will consist of the mortgage interest plus principal amount plus monthly payments for insurance and taxes. What will the total monthly payments be for a 15-year and a 30-year loan including taxes and insurance? 15 year loan - \$575.00 mortgage payment, \$31.25 taxes, \$20.83 insurance. Total monthly payment \$575.00+\$31.25+20.83 = \$627.08 per month 30 year loan - \$439.00 mortgage payment, \$31.25 taxes, \$20.83 insurance. Total monthly payment \$439.00+\$31.25+\$20.83 = \$491.08 6.After paying for his car, utilities, and a 15-year mortgage payment how much will he have left to cover other living expenses? If he goes with a 30-year mortgage, how much will he have left over to cover living expenses? 15 year loan - \$627.08+\$249+\$79+\$49+\$27+\$100 = \$1131.08

\$1776-\$1131.08 = \$644.92 left per month for living expenses
30 year loan - \$491.08+\$249+\$79+\$49+\$27+\$100 = \$995.08
\$1776-\$995.07 = \$780.93 left per month for living expenses
7.Make a list of your living expenses and try to estimate monthly expenses. Does Joe have enough left over to live comfortably if he buys the house? Should he go with the 15 or the 30-year mortgage?...

Please join StudyMode to read the full document