You want to purchase a home, and you know that the maximum monthly payment that you can afford is $900. The loan term will be 30 years, with payments made monthly, beginning one month from now. If the annual interest rate is 6% (compounded monthly), what is the maximum amount that you could borrow today?
a. $324,000.00 b. $150,863.02 c. $150,112.45 d. $148,660.18