Hello, mandy!

James is buying a house on a 30-year conventional mortgage at 6.25% APR.

He will put 3% down on the loan.

If he wants to keep his monthly payments at or below $1,000,

how much is the most expensive house James can buy?

The amortization formula is: .

. . where: .

We have: .

Then: .

This is the maximum amount he can borrow,

. . which is 97% of the price of the house.

Therefore, he can buy a house up to: .