Question

Authors About Ayoung mamed cople has carelly locked at tes budget At, miew, bry can afrd a mony mígage payment of S1,100 00 They gotoha loca baan ad ปe des in. amoi age of 450% APR ve, motiy compondig witaterm of 30 years Thecogie hua erogh samus to pay 20% dwe, so he mn age wil be as a ne hans vale What isDomnd gethat8ecade c瀱apply br based on their bdget and the terms? Answer Format: Currency: Round to: 2 decimal places Enter Answer Here Submil Answer ㄚ

Answer 1

Monthly payment = $1,100.00
Annual interest rate = 4.56%
Monthly interest rate = 0.38%
Period of loan = 30 years or 360 months

Value of mortgage = $1,100/1.0038 + $1,100/1.0038^2 + .... + $1,100/1.0038^360
Value of mortgage = $1,100 * (1 - (1/1.0038)^360) / 0.0038
Value of mortgage = $1,100 * 195.979825
Value of mortgage = $215,577.81

So, they can apply for mortgage loan of $215,577.81