Ife wants to buy a house (with no money down!) and the largest amount of...
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Accounting
Ife wants to buy a house (with no money down!) and the largest amount of monthly payments she can afford is $6,400.00.
a) What is most expensive house Ife can buy if the interest rate on the mortgage is 9.775% compounded annually.
b) If Ife insists on a 20 year amortization period, now what is the most expensive house she can afford? (Still with no money down and the same interest rate as in part a) )
c) Ife's mortgage broker says that with those payments (and a 25 year amortization period) they can afford a $743,000.00 house. What is the interest rate r(1)?
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