Mortgage Dr. Gupta is considering a mortgage at interest. She can make payments of a month. What size loan can she afford?
The size of loan that Dr. Gupta can afford, considering a mortgage at interest with a payment of a month.
The interest per year is,
Number of years is,
The payment is,
The loan can be considered as an annuity whose present value, (size of the loan) is given by the formula for present value of an annuity consisting of regular payments of size and interest rate per time period; that is,
The number of regular payments is given by,
The interest per year is given by,
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