document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1173876>Question 1173876</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 1- Aya and Harumi would like to buy a house and their dream house costs $500,000. They have $50,000 saved up for a down payment but would still need to take out a mortgage loan for the remaining $450,000 and they're not sure whether they could afford the monthly loan payments. The bank has offered them an interest rate of 4.25%, compounded monthly. <BR>\n" );
document.write( "How much would they have to be able to afford to pay each month in order to pay off their mortgage in 25 years? <BR>\n" );
document.write( "What is the total amount that would be paid to the lender after 25 years of payments? \r<BR>\n" );
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document.write( "2- What if Aya and Harumi could only afford a monthly payment of $2,000? <BR>\n" );
document.write( "What would be the maximum mortgage amount they could afford to borrow from the bank if all the other conditions were the same? <BR>\n" );
document.write( "What is the total amount that would be paid to the lender over 25 years?  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #799189 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=799189\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> an online calculator that helps you to solve this can be found at <a  rel=nofollow HREF= \"\" target = \"_blank\"></a> \r<BR>\n" );
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document.write( "to find the monthly payment required, provide the following inputs to this calculator.\r<BR>\n" );
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document.write( "pv = 450,000<BR>\n" );
document.write( "fv = 0<BR>\n" );
document.write( "np = 25 years * 12 months per year = 300<BR>\n" );
document.write( "ir = 4.25% per year / 12 months per year = .354166667<BR>\n" );
document.write( "payment at end\r<BR>\n" );
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document.write( "click on pmt to get:<BR>\n" );
document.write( "payment at end of each time period = 2,437.82.\r<BR>\n" );
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document.write( "total amount of payments would be equal to 300 * 2,437.82 = 731,346.00.\r<BR>\n" );
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document.write( "here are the results from the calculator.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/012701.jpg\" >\r<BR>\n" );
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document.write( "to find the maximum mortgage amount they could afford to borrow is they could only pay 2,000, provide the following inputs to this calculator.\r<BR>\n" );
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document.write( "fv = 0<BR>\n" );
document.write( "np = 25 years * 12 months per year = 300<BR>\n" );
document.write( "pmt = -2000<BR>\n" );
document.write( "ir = 4.25% per year / 12 months per year = .354166667<BR>\n" );
document.write( "payment at end\r<BR>\n" );
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document.write( "click on pv to get:<BR>\n" );
document.write( "maximum mortgage amount they could afford = 369,181.93.\r<BR>\n" );
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document.write( "total payments would be equal to 300 * 2000 = 600,000.\r<BR>\n" );
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document.write( "here are the results from the calculator.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/012702.jpg\" > </SPAN>\n" );
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