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miguel currently pays 950 for rent each month and has decided to purchase a home. the...

miguel currently pays 950 for rent each month and has decided to purchase a home. the home he wants costs $156,000. he has a down payment for 25,000 and has already secured 4.75% on a 20-year mortgage. what would Miguel need to type into Excel to figure the maximum amount that he could borrow?
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Answer #1

The maximum amount that can be borrowed can be find using the excel function PV(rate, period, amt)

Rate of 4.75% assumed as yearly rate, the period is for 20 years and the amount that Miguel is willing to pay is taken as 12 months equivalent of rent ,ie, 11400 $. By inserting the function with appropriate figures, we can find that Maximum amount he could borrow is $145129.63.

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