SOLUTION: You can afford a monthly mortgage payment of $1,650 and can get a 15-year 5.625% loan. What is the maximum loan you can get so your payment does not exceed $1,650?

Question 1116952: You can afford a monthly mortgage payment of $1,650 and can get a 15-year 5.625% loan. What is the maximum loan you can get so your payment does not exceed $1,650?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!

The formula to compute the monthly payment is

where,
L = loan amount
P = monthly payment
c = interest rate per period
n = number of periods

In this case,
L = unknown
P = 1650
c = r/12 = 0.05625/12 = 0.0046875
n = 12*y = 12*15 = 180 months

Plug in the given info. Then solve for L

Round to the nearest dollar to get L = 200308. This is the max L can be so that P does not exceed 1650 If L = 200308, then P = 1650.

Final Answer: 200308 dollars

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