Question

Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced.

You find that the going rate for a home mortgage with a term of 30 years is 7% APR. The lending agency says that based on your income, your monthly payment can be at most $770. How much can you borrow? (Round your answer to the nearest cent.)

Answer 1

Answer:

115736.83

Step-by-step explanation:

Effective rate:

.07/12= .005833333333

$770(\frac{1-(1+.005833333)^{-30*12}}{.005833333333})=115736.83$

Answer 2

Step-by-step explanation:

Answer:

115736.83

Step-by-step explanation:

Effective rate:

.07/12= .005833333333

770(\frac{1-(1+.005833333)^{-30*12}}{.005833333333})=115736.83770(

.005833333333

1−(1+.005833333)

−30∗12

)=115736.83