The Johnsons have accumulated a nest egg of $17,000 that theyintend to use as a down payment toward the purchase of a new house.Because their present gross income has placed them in a relativelyhigh tax bracket, they have decided to invest a minimum of$1000/month in monthly payments (to take advantage of the taxdeduction) toward the purchase of their house. However, because ofother financial obligations, their monthly payments should notexceed $1300. If local mortgage rates are 8.5%/year compoundedmonthly for a conventional 30-year mortgage, what is the pricerange of houses they should consider? (Round your answers to thenearest cent.)
least expensive-
most expensive-
I am doing ok with annuities but this problem has me very stuck. Ifanyone can help please show work in detail and explain the steps soI can see where I am getting stuck! Thanks in advace!
The Johnsons have accumulated a nest egg of $17,000 that theyintend to use as a down payment toward the purchase of a new house.Because their present gross income has placed them in a relativelyhigh tax bracket, they have decided to invest a minimum of$1000/month in monthly payments (to take advantage of the taxdeduction) toward the purchase of their house. However, because ofother financial obligations, their monthly payments should notexceed $1300. If local mortgage rates are 8.5%/year compoundedmonthly for a conventional 30-year mortgage, what is the pricerange of houses they should consider? (Round your answers to thenearest cent.)
least expensive-
most expensive-
I am doing ok with annuities but this problem has me very stuck. Ifanyone can help please show work in detail and explain the steps soI can see where I am getting stuck! Thanks in advace!
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