Question

You can afford a $1000 per month mortgage payment. You've found a 30 year loan at 8% interest. a) How big of a loan can you afford? Round your answer to the nearest dollar.$b) How much total money will you pay the loan company? Round your answer to the nearest dollar.$c) How much of that money is interest? Round your answer to the nearest dollar.$

Answer 1

Step-by-step explanation:

We were given the following information:

Mortgage payment = $1,000

Duration = 30 years

Interesr rate = 8%

We will calculate the following as shown below:

a) The loan you can afford is given by: