Simplify, and put your answer in terms of i.
Answer:
$14400
Step-by-step explanation:
3600*2=7200 after the first 7 years
7200*2= 14400 after the next 7 years
17-14=3 years left after the first 14 years
if you add a negitive to a positive its like subtracting like 20 - (-30) (that would be -10) for your question its 0.6
Let x = amount of mortgage (aka the amount by the bank)
25% of the monthly income of $3000 is 0.25*3000 = 750 dollars
So using this rule, the family can pay up to $750 per month on mortgage
1% of the amount loaned (x) is equal to this figure, so
0.01*x = 750
0.01*x/0.01 = 750/0.01
x = 75000
Therefore, the most expensive mortgage this family can afford is $75,000. Anything higher and they go over budget.
