Question
Alice has $225,000 in savings in an investment account. She is able to earn an APR of 4.5% in her investment account (which has monthly
Alice has $225,000 in savings in an investment account. She is able to earn an APR of 4.5% in her investment account (which has monthly compounding). Ignore tax.
She decided to buy a house of take out a 30-year mortgage. The mortgage will have an APR of 4.5% with monthly compounding and monthly payments. The bank requires at least a 20% house value down payment. She decides to buy the largest possible house given her savings.
What is her monthly mortgage payment?
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Accounting Principles Part 3
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
6th Canadian edition Volume 1
1118306805, 978-1118306802
