Client #2

Malia would like to buy a house and can afford to pay $2,000 per month for a house payment. Your bank is offering 30-year mortgages at a 2.9% interest rate compounded monthly. She wants to know the maximum price of a house that she can afford.

(5 pt) Find the maximum house price for Malia. Write out 1) the correct formula with variables (e.g. P₀, P_N, N, r, etc.), and 2) the correct formula with the numerical values (round your answer to the nearest cent, 3) write the answer in a complete sentence.