Question
Youd like to buy a house, and you decide you can pay $4000 per month for 30 years (360 months). Your bank offers you a
Youd like to buy a house, and you decide you can pay $4000 per month for 30 years (360 months). Your bank offers you a 30-year fixed-rate mortgage loan and quotes you a 6.00% APR (Annual Percentage Rate), compounded monthly. (a) What effective monthly rate is the bank offering you? (b) What is the maximum house price that you can afford if you have to pay for the house entirely with the mortgage?
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Make Money Teaching Online Courses
Authors: Andrew P.C.
1st Edition
1071003925, 978-1071003923
