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The Pandeys were looking at buying a new house in Surrey. Their bank used the 32% rule decided that they can afford a maximum monthly

The Pandeys were looking at buying a new house in Surrey. Their bank used the 32% rule decided that they can afford a maximum monthly mortgage payment of $2,500. How large of a mortgage would the bank authorize if the mortgage will be amortized over 25 years, at 2.79% compounded semi-annually for a 5-year term.

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