Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their

A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They purchased their home 13 years ago for $70,094. The home was financed by paying 20% down and signing a 15-year mortgage at 9.6% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 15-year period. The net market value of the house is now $100,000. After making their 156th payment, they applied to the loan company for the maximun loan. How much (to the nearest dollar) will they receive?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Mathematics For Business Economics, Life Sciences, And Social Sciences

Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker

14th Edition

0134674146, 978-0134674148

More Books

Students also viewed these Finance questions