Concept explainers
Mortgage Dr. Gupta is considering a 30-year mortgage at 6% interest. She can make payments of $3500 a month. What size loan can she afford?
The amount of loan that GT can afford.
Answer to Problem 19E
The loan amount is $583,770.65.
Explanation of Solution
Loan amount is an amount which can be borrowed for specific period of time and is expected to be paid back with interest.
Formula to calculate loan amount:
Where,
i= interest amount
Given:
Monthly payment: $3,500
Period: 30 year
Total number of payment:
Interest rate: 6%
Calculation:
Calculate the loan amount that GT can afford:
Therefore, the loan amount is $583,770.65.
Chapter 12 Solutions
Precalculus: Mathematics for Calculus - 6th Edition
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