Mortgage

You have decided to buy a house but you only have $900 to spend each month on a 30-year mortgage. The bank has quoted an interest rate of 8.75%. What is the maximum purchase price?

Variable	Enter
Clear
Pmt Timing	End
Future Val	0
Payment	-900
Intrst/Yr%	8.75
Periods	360
Periods/Yr	12
Cmpnds/Yr	12

Compute Present Val by scrolling to its variable and choosing Calculate from the menu.

You can afford a home with a price of $114,401.87.