Question: A chemical engineer would like to buy a house using an annuity scheme paid at the end of each year for the next 20

A chemical engineer would like to buy a house using an annuity

A chemical engineer would like to buy a house using an annuity scheme paid at the end of each year for the next 20 years at an 8% annual interest rate. The engineer can pay $20,000 today as a downpayment and is willing to pay an annuity of up to $24,000 per year (paid at the end of each year). What is the maximum price of the house affordable to the engineer?

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