Question
If a borrower can afford to make monthly principal and interest payments of $1,000 and the lender will make a 30-year loan at 8-1/2%, how large a loan (rounded to the nearest $100) can this buyer afford? (BE SURE TO USE THE AMORTIZATION TABLE.)
30 yr loan at 8-1/2%=7.69
30 yr loan at 8-1/2%=7.69