You plan on borrowing in order to buy a condo. You want to borrow for 30 years and make monthly payments. The maximum monthly payment you can make is $850 per month. You want to pay the whole loan back by the end of 20 years (Hint: Fv = 0). You have checked with your banker that your annual mortgage interest would be 5.5% per year. What is the maximum loan amount you can borrow under these conditions?
You plan on borrowing in order to buy a condo. You want to borrow for 30 years and make monthly payments. The maximum monthly payment you can make is $850 per month. You want to pay the whole loan back by the end of 20 years (Hint: Fv = 0). You have checked with your banker that your annual mortgage interest would be 5.5% per year. What is the maximum loan amount you can borrow under these conditions?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You plan on borrowing in order to buy a condo. You want to borrow for 30 years and make monthly payments. The maximum monthly payment you can make is $850 per month. You want to pay the whole loan back by the end of 20 years (Hint: Fv = 0). You have checked with your banker that your annual mortgage interest would be 5.5% per year. What is the maximum loan amount you can borrow under these conditions?
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