SOLUTION: Nina and Tom would like to purchase a new home, but they are not sure if they can afford the $2420/month mortgage payment. A finance company is willing to finance the purchase at 7

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Question 1083034: Nina and Tom would like to purchase a new home, but they are not sure if they can afford the $2420/month mortgage payment. A finance company is willing to finance the purchase at 7% and 30-year term. What is the amount of money they are considering borrowing?
Found 2 solutions by addingup, MathTherapy:
Answer by addingup(3677)   (Show Source): You can put this solution on YOUR website!
2420*360 = 871200
~~~~~~~~~~~~~~~~~~~~~~~~~
x(1+(0.07/12))^12*30 = 871200
x*8.02 = 871200
x = 871200/8.02
x = 108628.43
Answer by MathTherapy(10555)   (Show Source): You can put this solution on YOUR website!

Nina and Tom would like to purchase a new home, but they are not sure if they can afford the $2420/month mortgage payment. A finance company is willing to finance the purchase at 7% and 30-year term. What is the amount of money they are considering borrowing?
Correct answer: They're borrowing:  		

IGNORE all other NONSENSICAL and RIDICULOUS answers. 

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