Question

Bailey wants to buy a house, paying approximately $1000 per month. The bank estimates a 4.5% annual interest rate for 15 years. Which formula approximates the total value of a house Bailey can afford?

Answer 1

Data:

Amount per month: $1000

Interest rate: 4.5% annual for 15 years

As Bailey wants to pay approx. $1000 per month, in a year he wants to pay approx.: $12000

`1000\cdot12=12000`