You are looking to get a 30 year mortgage at 4%. You can afford $1,000 per month. a) What is the maximum principal you can borrow? $ b) Instead of a home, you decide to buy a duplex and rent out the other side for $500 a month. With this additional $500 added to your monthly payment, what is the maximum principal you can borrow? c) You buy a duplex for the amount of your answer in part (a), but apply the extra $500 to the mortgage (making your payment $1,500). How long does it take to pay off this loan in years? years

You are looking to get a 30 year mortgage at 4%. You can afford $1,000 per month. a) What is the maximum principal you can borrow? $ b) Instead of a home, you decide to buy a duplex and rent out the other side for $500 a month. With this additional $500 added to your monthly payment, what is the maximum principal you can borrow? c) You buy a duplex for the amount of your answer in part (a), but apply the extra $500 to the mortgage (making your payment $1,500). How long does it take to pay off this loan in years? years

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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