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
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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):
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