Question

A person is planning to buy a house by getting a mortgage from a bank. Suppose he can only afford a monthly mortgage payment of $2200 for 15 years.
What is the maximum mortgage he can get if the nominal interest rate is at a constant 4%? Assume that the payments and the compounding are both continuous.

Answer 1

Use Pe^(rt)
P = Principal
e = natural number approximately 2.718...
r = rate
t = time in years

Answer 2

not quite...i've entered this to my online homework but it keeps saying its incorrect even with that eqn

Answer 3

we were given this eqn in class for mortgage

a(t) = Ao(e^(rt)+ p/r (e^(rt)-1)

Answer 4

are we looking for A(t)???

Answer 5

Wait, did you get 3153.324712?

Answer 6

yep

Answer 7

and its saying its wrong

Answer 8

Try 4008.66

Answer 9

that is also incorrect :(