Determine maximum amount that buyer can afford to borrow


A home buyer can afford to spend no more than $1500/month on mortgage payments. Suppose that the interest rate is 6%, that interest is compounded continuously, and that payments are also made continuously. A)determine the maximum amount that this buyer can afford to borrow on a 20yr mortgage; on a 30yr mortgage. B)Determine the total interest paid during the term of the mortgage in each of the cases in part (a).

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Mechanical Engineering: Determine maximum amount that buyer can afford to borrow
Reference No:- TGS0710835

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