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Consider a homebuyer / investor who plans to buy a new house, the price of which is $ 5 0 0 , 0 0 0

Consider a homebuyer/investor who plans to buy a new house, the price of which is $500,000. Suppose the buyer does not have any initial savings for the down payment. To buy the house, he needs to borrow $500,000 from the bank in the form of a mortgage loan. The mortgage is a 30-year fixed rate mortgage. After buying the house, the buyer budget is $30,012 per year. That is, if the mortgage asks him to repay more than $30,012 per year, then he cannot afford it and would choose not to buy this house. Derive the investment of this buyer as a function of interest rate r.

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