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October 1, 2014

October 1, 2014

Posted by **Sara** on Tuesday, May 15, 2012 at 5:53pm.

- Math -
**Reiny**, Tuesday, May 15, 2012 at 6:49pmso we want the present value of 360 payments of 2400

at i = .08/12 = .006666... (I stored in calculator memory for more accuracy)

PV = 2400(1 - 1.006666..^-360)/.006666...

= 3270840.41

So with a downpayment of 40000 and a payment of 2400 Johnson could consider a house around

367 000 dollars ..... (367080.42)

If you want to know his limit with a payment of 3000 per month, repeat the above, simply replacing the 2400 with 3000 in the calculation, then adding 40000

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