Question: The Jackson have determined that after making a down payment, they could afford at most $2000 for a monthly house payment. The bank offered him

The Jackson have determined that after making a down payment, they could afford at most $2000 for a monthly house payment. The bank offered him two different mortgages:

(a)a term of 30 years and an interest rate of 5.70% per year compounded monthly. (2 points)

(b)an interest-only loan for a term of 30 years and an interest rate of 5.94% per year. (1 point)

What is the maximum amount he can borrow with each of these mortgages?

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