Michelle Duncan Wants to Know What Price Home She Can

Multiple Choice

Michelle Duncan wants to know what price home she can afford.Her annual gross income is $45,000.She owes $750 per month on other debts and expects her property taxes and homeowners insurance to cost $250 per month.She knows she can get a 7.5%,30 year mortgage so her mortgage payment factor is 6.99.She expects to make a 20% down payment.What is Michelle's affordable home purchase price? Round your answer to the nearest $100.

A) $76,000
B) $60,800
C) $304,000
D) $42,500
E) $254,800