You are interested in buying a $1-$million$-$dollar house and plan to put down a $10\%$ downpayment

$($Which means you will have to borrow the remaining $$900,000).$ Your mortgage lender puts your

credit score into the computer and quotes you a monthly payment of $$5,837\mathrm{.}38$ at a rate of $6\mathrm{.}75\%$

$($monthly rate $=6\mathrm{.}75/12).$ The term of the loan is a $30$ years.

A$.$ Recall our formula:

Present Value of an annuity: $0=/(1(1/(1+)^))$

Identify the following inputs to our equation: $(0,$ c$,$ r$,$ N$)$ from the problem above.

B$.$ If you felt that you could afford a higher monthly payment of $$6,500$ how much more

money would you be able to borrow from the bank $($assume other elements stay the same$).$

C$.$ You see a new house come on the market that is listed at $$1\mathrm{.}5$ million, what would your

monthly payment be if put a $10\%$ downpayment on this new property $($Again$,$ assume

everything else stays the same$).$