In the past seven years, Kathys uncle has been paying her monthly allowance of $1,000 in arrear, directly deposited into Kathys bank account, with an interest rate of 6% p.a. compounded monthly. Today, Kathy decides to use the accumulated sum of the monthly allowances her uncle pays for a cash down payment to buy a house. Kathy is currently prepared to pay up to $1,500 at the end of each month for a 20-year mortgage, and her bank is currently charging 4% p.a. interest, compounded monthly. What is the maximum house price Kathy can afford?

a.

$2,246,914

b.

$370,795

c.

$28,779

d.

$351,607