Use the Table to Determine the Maximum 30-Year Loan, Rounded } \end{array}">$$\begin{array} { l c c c c } \text { cellpadding="0" cellspacing="0" align="center" width } = " 99 \% " \text { border="1"> } \end{array}$$

question 195

Multiple Choice

Use the table to determine the maximum 30-year loan, rounded to the nearest dollar, that you could obtain if you are given the loan rate 6% and the maximum house payment you can afford is $2,430 per month. } \end{array}">$$\begin{array} { l c c c c } \text { cellpadding="0" cellspacing="0" align="center" width } = " 99 \% " \text { border="1"> } \end{array}$$

$\text { Monthly Cost to Finance } \$ 1,000$

$\begin{array}{lcccc} &{\text { Number of Years Financed }} \\\text { Rate of } & 5 \text { Years } & 10 \text { Years } & 20 \text { Years } & 30 \text { Years } \\\text { Interest } & \mathrm{N}=60 & \mathrm{~N}=120 & \mathrm{~N}=240 & \mathrm{~N}=360 \\6.0 \% & & & & \\7.0 \% & 19.33 & 11.10 & 7.16 & 6.00 \\8.0 \% & 19.80 & 11.61 & 7.75 & 6.65 \\9.0 \% & 20.28 & 12.13 & 8.36 & 7.34 \\& 20.76 & 12.67 & 9.00 & 8.05\end{array}$

• A) $40,500
• B) $4,374
• C) $405,000
• D) $52,488
• E) $437,400

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