Hello Everyone! Can you please help. I need to figure this problem out asap
Jack says that he can afford a monthly payment of $1200. On the basis of his credit, Jeff thinks he would qualify for a 7.5% rate. How much could this client borrow with a 15 year loan? A 30 year loan?
I have a table to work from for the answer, but I am stuck
Here is the table
Years 7.0% 7.5% 8.0% 8.5% 9.0%
15 111.255958 107.873427 104.640592 101.549693 98.5934088
30 150.307568 143.017627 136.283494 130.053643 124.281866
If you have help I would appreciate it.
The beginning formula is
PV=PMT a nli