car payment and mortgage payment

[ChiCHi]

OK here is the question I am struggling with:

The case is designed to determine and evaluate the payment amount of a car loan and a mortgage, based on your income. If you prefer, you may assume that your household income is $48,000 per year or $4,000 per month. Based on your income, you may spend 28 percent of your monthly income on housing and 10 percent on a car loan. You are to put a 3 percent down payment on the house and a 10 percent down payment on the car. These will make the loan to value of your loans to less than one: 97 percent on the house and 90 percent on the car.

Determine the car payment and mortgage payment with the following conditions: your monthly household income, 10 percent for the car payment, and 28 percent for the mortgage payment. Also, assume a 10 percent down payment on the car and a 3 percent down payment on the house.

Create an amortization schedule, and graph the components over time: interest, principal, and balance. I can do this once the figures have been determined.

Discuss the distributions of principal, interest, and the balance over the life of the loan.

 

[Denis]

ChiChi, may I ask politely: what kind of nutcase teacher gave you this?

All that can be answered here is:
4000 * .28 = 1120 (mortgage payment)
4000 * .10 = 400 (car payment)

NOTHING else can be done; no interest rates or term lengths are given.

 

[ChiCHi]

Denis,
I am taking a Finance Class and that was the question. I had the same answers as you but wanted to make sure I wasn't overlooking something. I have to write a 3 page paper discussing my findings. I wasn't the only one inquiring about the question

 

[Shobhana]

ChiChi, may I ask politely: what kind of nutcase teacher gave you this?

All that can be answered here is:
4000 * .28 = 1120 (mortgage payment)
4000 * .10 = 400 (car payment)

NOTHING else can be done; no interest rates or term lengths are given.

That's exactly what I thought. In short, you need to pay 1120 per month in your mortgage and then 400 per month for your car. But this is subject to change when you do some advanced payment.

I'm real estate agents.