Harrison is ready to purchase his first home. Current interest rates for a fixed, 30 year mortgage are 3.6%. He wants to pay no more than $750 per month on his home. How expensive of a home can he afford?
750x12x30x1.036 =$279720.00 this works by: we can pay 750 per month so times 12 as there are 12 months in a year. the mortgage is for 30 years so times 30, and then the mortgage is 3.6 so times 1.036 (=100%+3.6%)
