Question: You're ready to purchase your first house. After checking your budget very carefully, you determine that you can afford to make house payments ( principal

You're ready to purchase your first house. After checking your budget very carefully, you determine that you can afford to make house payments (principal and interest) of $1500 a month. If you put 20% down, how expensive of a house can you afford? Assume an interest rate on a 30 year loan of 6%. Ignore the impact of property taxes and homeowners insurance.

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