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 2. 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 . . .

. . . . . . . . . . . . . . . $\displaystyle \text{Interest Rate}$

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

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

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

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

3. ## 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