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C https://www.csepub.com/exercise/users answers/8297963/edit CSePub Home Book Store Independent Authors About Your Cart tems:Total: $99.99 View Cart A young married couple has carefully locked at their bucget. After review, they can afford a monthly mortgage payment of $1,012.00. They go to their local banker and she offers them a mortgage ot 6 00% APR with monthly compounding with a term or 30 years. The couple has enough savings to pay 20% down, so the mortgage will be 80% ot the homes value. What is the mortgage that the couple can apply for based on their budget and the offered terms? Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here Submit Answer + Prev Problem A Problems Next Problem Contact Us Privacy Policy TeTIs Copyright 2018 Conley Smith Publishing. All Right reserved. 9:20 PM O Type here to search 9/26/2018 2

Explanation / Answer

Here monthly payment PMT =$1012

interest rate monthly r= 6%/12 = 0.5%

period nper = 30*12 =360 months

we will use excel formula to find out the loan value

loan value PV= PV(RATE,nper,PMT)

=PV(0.5%,360,-1012)

= $168,793.11

since 20% that can pay cash hence total mortgage thaey can apply= 168,793.11/0.8 = $210,991.39

Thanks

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