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Math Help - Hi Everyone! Please help!!

  1. #1
    Newbie
    Joined
    Apr 2008
    Posts
    6

    Hi Everyone! Please help!!

    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

    Interest Rate

    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
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  2. #2
    Super Member

    Joined
    May 2006
    From
    Lexington, MA (USA)
    Posts
    11,905
    Thanks
    765
    Hello, linda14522!

    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 . . .

    . . . . . . . . . . . . . . . \text{Interest Rate}

    \begin{array}{c|ccccc} <br />
\text{Years} &  7.0\% & 7.5\% & 8.0\% & 8.5\% & 9.0\% \\ \hline <br />
15 & 111.255958 & 107.873427 & 104.640592 & 101.549693 & 98.5934088 \\<br />
 30 & 150.307568 & 143.017627 & 136.283494 & 130.053643 & 124.281866<br />
\end{array}
    They've already done the hard work for us . . .

    On the table, look up "7.5% and 15 years" . . . We find: 107.873427

    Multiply by the montly payment: . 1200 \times 107.873427 \:=\:129388.2512


    Therefore, Jack can borrow up to $129,388.25 with a 15-year loan.

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  3. #3
    Newbie
    Joined
    Apr 2008
    Posts
    6

    Smile Thank you!!!

    Soroban - Thank you Thank you Thank you!!!

    I got it now. I couldn't get it because I just was making too much out of it. Thank you so much!

    Linda14522
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