You go to the bank to see how you can borrow to purchase a house (i.e., to see how big a mortgage you expect to be able to get). You have $2,000/month to spend on the mortgage payment (which is paid monthly), and the interest rate on the mortgage is a 7.2% APR with monthly compounding. How much do you expect to be able to borrow if you plan to get a 30-year mortgage (360 monthly payments)? Record your answer rounded to two decimal places (e.g. 502.65)

Answer rating: 100% (QA)

To calculate how much you can borrow for a mortgage we can use the formula for the monthly ... View the full answer