Ask Question
19 May, 15:43

Milo can afford a $900 monthly mortgage payment. If the current mortgage rates are 5% and he wants a 30-year mortgage, what is the maximum amount he can afford to borrow?

+1
Answers (1)
  1. 19 May, 18:21
    0
    Approximately $167,653. First, you compute the number of periods as 30 years multiplied by 12 months to get 360 monthly periods. Next, you compute the monthly mortgage rate as 5% divided by 12, or roughly 0.42%. Then, using a payment of $900 monthly, 0.42% for the interest rate, future value of $0, and 360 monthly periods, you compute the present value (PV) as $167,653.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Milo can afford a $900 monthly mortgage payment. If the current mortgage rates are 5% and he wants a 30-year mortgage, what is the maximum ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers