Answer:
It can take a mortgage up to 90,819 dollars
Explanation:
1,300 per month
-300 maintenance and other cost
1,000 per month
What is the PV of an annuity of 1,000 dollars
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 1000 (proceeds from the rent)
time 240 (20 year x 12 month per year)
rate 0.01 ( 12% / 12 months = 1%)
[tex]1000 \times \frac{1-(1+0.01)^{-240} }{0.01} = PV\\[/tex]
PV $90,819.4163
It can take a mortgage up to 90,819 dollars
