Mr. and Mrs. Harrison are planning to buy a house in Cardiff. Their bank A has offered them the following mortgage deal for the house. Mortgage Period: 20 years Monthly Payment: 1,200 Down Payment Requirement: 10% of the Property price Nominal Interest Rate: 4% per annum Required: Calculate the maximum price of the property based on the above terms

Answer rating: 100% (QA)

To solve this problem we can use a formula for the present value of an annuity which states t... View the full answer