Homework Help: public finance

Posted by Jamie on Wednesday, September 26, 2012 at 10:11pm.

Your annual income is $50,000. You want to take out a mortgage loan to buy a house. The rule on mortgage loan requires that your annual mortgage payment cannot exceed 30% of your annual income. If the current interest rate is 5% for a 30-year mortgage loan, what is the maximum amount one can borrow for a house?

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