Algebra.Com's Answer #846486 by ikleyn(52777)![\"\"](\"/images/stars/stars-13.gif\")  
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document.write( "You can afford a $900 per month mortgage payment. You've found a 30 year loan at 7.7% interest.\r
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document.write( "a) How big of a loan can you afford? (Round to the nearest cent, as needed.)
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document.write( "b) How much total money will you pay the loan company? (Round to the nearest cent, as needed.)
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document.write( "c) How much of that money is interest? (Round to the nearest cent, as needed.)
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document.write( "Use the formula for the monthly payment for a loan\r\n" );
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document.write( " M =  \r\n" );
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document.write( "where L is the loan amount; r =  is the effective interest rate per month;\r\n" );
document.write( "n is the number of payments (same as the number of months); M is the monthly payment.\r\n" );
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document.write( "From this formula, the expression for the maximum loan is\r\n" );
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document.write( " L =  .\r\n" );
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document.write( "In this problem M = $900; r = , n = 30*12 = 360 monthly payments.\r\n" );
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document.write( "Substitute these values into the formula and get for the maximum loan amount\r\n" );
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document.write( " L =  = $126,234.26.\r\n" );
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document.write( "Maximum loan you can afford is $126,234.26. <<<---=== It is the ANSWER to (a).\r\n" );
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document.write( "You will pay to the loan company 360*$900 =$324,000. <<<---=== It is the ANSWER to (b).\r\n" );
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document.write( " It is the monthly payment of $900 taken 360 times.\r\n" );
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document.write( "The interest is the difference between (a) and (b) \r\n" );
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document.write( " $324,000 - $126,234.26 = $197,765.74. <<<---=== It is the ANSWER to (c).\r\n" );
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document.write( "Solved.\r
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