Question

please help
pretty please
the question is #7 . the correct answer is B but i need to explain in word form why its B

Answer 1

Did you figure out the the 20% deposit for each house ?

Answer 2

do i multiply .20 x each asking price?

Answer 3

yes

Answer 4

Bungalow deposit $47,200
Craftson is 55,000
Victorian is 64,800
?

Answer 5

the reason we need those numbers, is because they are not going to spend all of their savings. They are keeping 350% of their monthly income. That is a complicated way to say they want to keep 6845*3.5 in their bank account
they want to keep 23,957.50

Answer 6

they have 71250 but want to keep 23957.5
that leaves 71250-23957.5 to spend

Answer 7

so they have 42,292.5 to spend?

Answer 8

i mean 47,292.5

Answer 9

yes, 47292.50 to spend on the down payment.
based on that, they can only afford the bungalo.

next, we have to check the other requirement.
20% of their income for the mortgage.
that means 0.20 * 6845 = 1369 has to be more than the monthly mortgage for the bungalow
1369 is bigger than the mortgage 1205
so they can afford the bungalow's mortgage

It looks like they can afford the bungalow, but not either of the others

Answer 10

thank you so much ! makes every bit of sense now