Question
You are looking to buy an apartment. The bank is willing to lend you 71% of the purchase price for 23 years and says you
You are looking to buy an apartment. The bank is willing to lend you 71% of the purchase price for 23 years and says you can afford to make annual payments of $1,561. The interest rate being offered is 6.2% per year.
What is the maximum purchase price of an apartment you can afford assuming you have enough cash on hand to pay the difference between the purchase price and the loan amount?
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