Question: You want to purchase a home based upon your current salary you decide that you can afford $2000.00 per month. Your bank has approved you

You want to purchase a home based upon your current salary you decide that you can afford $2000.00 per month.

Your bank has approved you for a (30 year) loan at an interest rate of 5%.

1) Based upon the above information, how much value (in dollars) can you currently afford when buying home?

2) How much value (in a home) can you afford if you wait until next year if interest rates increase by 1% ?

3) How much value (in a home) can you afford if you wait until next year if interest rates increase by 2% ?

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