SOLUTION: The Johnsonshave accumulated a nest egg of $40,000 that they intend to use as a down payment towards the purchase of a new house. They have decided to invest a minimum of $2400/mon

Question 747780: The Johnsonshave accumulated a nest egg of $40,000 that they intend to use as a down payment towards the purchase of a new house. They have decided to invest a minimum of $2400/month in monthly payments (to take advantage of tax deductions) toward the purchase of their house. However, because of other financial obligations, their monthly payments should not exceed $3000. If local mortgage rates are 7.5%/year compounded monthly for a conventional 30-year mortgage, what is the price range of houses that they should consider?
Answer by lynnlo(4176) (Show Source): You can put this solution on YOUR website!

RELATED QUESTIONS
The Johnsons have accumulated a nest egg of $50,000 that they intend to use as a down... (answered by math_tutor2020)

The Johnsons have accumulated a nest egg of $50,000 that they intend to use as a down... (answered by Theo)

A lender requires a minimum down payment of 12% of the value of the home. You have... (answered by math_tutor2020)

Can you help me with this question please? 14) Rajesh and Priya plan to retire at age... (answered by ikleyn)

You want to buy a $224,000 home. You plan to pay 10% as a down payment, and take out a 30 (answered by Boreal)

a bird builds a nest on the sill of a secod story office building window. during a storm, (answered by ewatrrr)

Kim's Mother Bought A House For 2 000 000 And Made A Down Payment Of 20%. What Was The... (answered by mananth)

You plan to work for 40 years and then retire using a 25-year annuity. You want to... (answered by Theo)

You are tasked with assisting a young couple in purchasing a home. The couple wants to... (answered by Theo,ikleyn)