Question
Anna and Doug are in the market for a new home.The maximum they can pay is $800 per month.Property taxes and homeowners insurance for this
Anna and Doug are in the market for a new home. The maximum they can pay is $800 per month. Property taxes and homeowners insurance for this payment are $240 per month. How much house can Anna and Doug finance if the mortgage interest rate is 4.5% per year? The maturity of the housing loan is 31 years (372 months).
The highest affordable home price is $__ (round to nearest dollar)
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
