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Mark wants to buy a house. To do so, he must incur a mortgage. A local lender has determined that Mark can afford a monthly

Mark wants to buy a house. To do so, he must incur a mortgage. A local lender has determined that Mark can afford a monthly principal and interest payment of $725. If the current rate on 30-year, fixed-rate mortgages is 5.50 percent, what is the maximum loan amount for which Luke can qualify? Assuming Mark will make a 5 percent down payment, what is the most he can pay for a house?

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