Alice has $225,000 in savings in an investment account. She is able to earn an APR of 4.5% in her investment account (which has monthly compounding). Ignore tax.

She decided to buy a house of take out a 30-year mortgage. The mortgage will have an APR of 4.5% with monthly compounding and monthly payments. The bank requires at least a 20% house value down payment. She decides to buy the largest possible house given her savings.

What is her monthly mortgage payment?

Answer rating: 100% (QA)

Okay lets solve this stepbystep Alice has 225000 in savings She needs a minimum 20 do... View the full answer