Question

In order to buy a house, a couple takes a mortgage of M dollars at an annuel rate of r percent to be paid off over N months

Answer 1

To determine the maximum loan that Joanna can afford and the amount she will end up paying after 30 years, we need to calculate the monthly payment using the given information.

Step-by-step explanation:

To determine the maximum loan that Joanna can afford, we need to calculate the monthly payment she can make using the given information. The annual interest rate is 4.2% and the loan term is 30 years. Using the formula for calculating the monthly payment of a mortgage, we can determine the maximum loan amount. After 30 years, Joanna will end up paying the monthly payment multiplied by the number of months in the loan term.