$($CHAPTER $6)$

You are looking for a house to buy. Here are your three options: interest rate, requiring monthly loan payments.

Given the information above, which of the three houses can you afford to buy?

SOLUTIONS:

You would approach this problem by first figuring out the maximum loan amount that you can afford to take from your local bank. You can do this math in one calculation step! For the loan amount, you would be solving for

$.$ More specifically, it's the type of annuity called $[$Select $]$

$$ amount for the payment.

for the number of time periods, and $$ In your calculations of the loan amount, you will use: $$ interest rate, $[$Select $]$

Your calculated loan amount is $.$ For your calculations, increase decimal places for any intermediate calculations, from the default $2$ to $6$ nal answer to whole number.

This will allow you to buy $$