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Avery and their family currently pay $1300 in rent per month. They want to know how much they could borrow
for a mortgage if they wanted to make monthly payments that are the same as their current rent.
One possible loan is a 30-year mortgage with a 3.48% APR. How much could Avery borrow? (Round down to the dollar.)
How much would they pay back over the life of the loan?
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Calculations in the post by @CPhill are not accurate.
The formula, which should be used, is
PV = .
Calculations should be done without making intermediate rounding.
Rounding is made at the end, ONLY.
The correct answer is 290,224.56 dollars, which can be rounded to $290,225.
Solved.
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I used MS Excel in my computer, which works with 15 decimals after the decimal point,
providing a necessary precision.
It is equivalent to Google worksheet.
These are the best and the most appropriate calculators for such computing.
You write the formula in any text editor, copy-paste it into the spreadsheet cell and get the answer instantly.