SOLUTION: GIVEN: Monthly mortgage payment = 514.980676 We can calculate how much of a house you can afford using the loan formula. In question thirteen, you determined the monthly

Algebra ->  Finance -> SOLUTION: GIVEN: Monthly mortgage payment = 514.980676 We can calculate how much of a house you can afford using the loan formula. In question thirteen, you determined the monthly      Log On


   

Question 1120582: GIVEN:
Monthly mortgage payment = 514.980676


We can calculate how much of a house you can afford using the loan formula. In question thirteen, you determined the monthly mortgage payment you can afford. Using this value found in #13 for the regular monthly payment to calculate the present value (P), assuming you receive a 30-year mortgage (loan) with an annual interest rate of 3.625% with monthly compounding. (Note: This rate is realistic for a mortgage initiated in April 2015.)



Answer by ankor@dixie-net.com(22740) About Me  (Show Source):
You can put this solution on YOUR website!
Monthly mortgage payment = 514.980676
you determined the monthly mortgage payment you can afford.
Using this value for the regular monthly payment to calculate the present value (P), assuming you receive a 30-year mortgage (loan) with an annual interest rate of 3.625% with monthly compounding.
:
The monthly payment: P = MP
P = 514.98
do the math
P%282.9620%2A.00302%29%2F1.962 = 514.98
.004559P = 514.98
P ~ $112,960