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if sally mander can afford 1100 monthly mortgage payment (30 years ) and she plans to...

if sally mander can afford 1100 monthly mortgage payment (30 years ) and she plans to put 20% down in the current mortgage rate is 7% how expensive of a house is he planning to purchase
$132270
$165338
$198406
$206673
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Answer #1

We need to find the present value of the monthly payments. That gives the borrowed amount. Divide the borrowed amount by (1 - down payment %)

r = 7%/12 = 0.005833333333

Number of monthly payments = 30 * 12 = 360

This is the amount Sally Mander borrowed.

The price of the house = Amount borrowed/(1 - down payment %)

The price of the house = 165,338.324740305/(1 - 0.20)

The price of the house = 206,672.905925381

The price of the house = 206,673

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