SOLUTION: Jack and Jill have R300 000 for a down payment, and their budget can accommodate a monthly mortgage payments of R8 500.00. What is the most expensive home they can buy if they can

Algebra ->  Finance -> SOLUTION: Jack and Jill have R300 000 for a down payment, and their budget can accommodate a monthly mortgage payments of R8 500.00. What is the most expensive home they can buy if they can       Log On


   

Question 1139118: Jack and Jill have R300 000 for a down payment, and their budget can accommodate a monthly mortgage payments of R8 500.00. What is the most expensive home they can buy if they can borrow money for 30 years at 7.8 p.a., compounded monthly?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
PV=8500(1-(1+(.078/12))^-360/(0.078/12) Th i in the formula is interest divided by number of payments per year
=1,180,767.83
add to that R300000
R1,480,767.83