Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. (Refer to Exhibit 9-8 and Exhibit 9-9) (Round time value factor to 2 decimal places, intermediate and final answers to the nearest whole dollar.) Monthly gross income $ 4,700
Down payment to be made (percent of purchase price) 20 percent
Other debt (monthly payment) $ 260
Monthly estimate for property taxes and insurance $ 490
30-year loan 8.5 percent
Affordable monthly mortgage payment $
Affordable mortgage amount $
Affordable home purchase $

Explanation:

NOTE: According to the Principal interest tax rate and insurance guide, the lender makes use of 38 % of monthly gross as guidelines.

Affordable monthly mortgage Payment = (Monthly gross income × 0.38) - other debt - Monthly estimate of property taxes  insurance)

= (4700 × 0.38) -260 - 490

= $1036

Affordable mortgage amount = affordable monthly mortgage payment / mortgage payment factor at 8.5 % for 30 yr loan) × 100

The Value of the mortgage payment factor which is taken from exhibit 9 - 9 is 7.69

= ($1036 / 7.69)  × 1000

= $134720.4

= $135000 to the nearest whole dollar

= $168750

balanced lifestyle would be the type of lifestyle that fulfill all aspects of our life, including financial security, personal achievements, emotional balance, and intimate relationships with other people.

for me personally, the job that i would choose to achieve a balanced lifestyle is opening an online store.

online store can be managed from the comfort of our phone. if we are the owner of the store, we can determine our own working hours. we can arrange our working hours so we have time to do things such as taking care of children, cultivating romantic relationship, or do our hobby.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.