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Leah is looking to take out a 30-year mortgage from a bank offering a monthly interest rate of 0.325% Using the formula below, determine the maximum amount Leah can borrow, to the nearest dollar, if the highest monthly payment she can afford is $900.
M=Pr/(1-(1+r)^-n)
M= the monthly payment
P= the amount owed
r= the interest rate per month
n= the number of payments

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okpalawalter8

Answer:

[tex]P=\$276646.153[/tex]

Step-by-step explanation:

Time [tex]T=30years[/tex]

Rate [tex]r=0.325\%[/tex]

Payment per month [tex]P=\$ 900[/tex]

Generally the equation for Principle  is mathematically given by

[tex]M=\frac{P r}{1-(1+r)^{-n}}[/tex]

[tex]900=\frac{P \frac{0.325}{100}}{1-(1+( \frac{0.325}{100}))^{- 30*12}}[/tex]

[tex]P=\frac{900*100*0.99}{0.325}[/tex]

[tex]P=\$276646.153[/tex]