# finance

A potential homebuyer has an annual income of \$40,000.00. Assuming an affordable monthly mortgage payment of \$850.00, what is the affordable mortgage amount at an interest rate of percent for 15 years?
a) \$127,820
b) \$94,655
c) \$91,314
d) \$81,626

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1. What percent interest is this homebuyer paying?

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2. Sorry I left that out - 7 percent.

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posted by Mimi
3. This site lets you figure the amount of payments based on the amount of the loan, interest rate, and time.

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4. monthly rate = .07/12
= .0058333

present value = 850(1 - 1.0058333^-180)/.0058333
= 94568

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posted by Reiny

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