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Lina20 [59]
3 years ago
15

Kylie can afford a $1310-per-month house loan payment. If she is being

Mathematics
1 answer:
Lesechka [4]3 years ago
8 0

Answer:

The amount which she borrow as house loan is $ 48514.56

Step-by-step explanation:

Given as :

The house loan per month afford by Kylie = $1310

The period of loan = 25 Years

The annual rate compounded monthly = 8.4%

Principal  = $ P

∵ The per month loan afford amount = $1310

So, The amount afford in 25 years = $1310 × 25 × 12

Or, The amount afford in 25 years = $393,000

<u>Now, from compounded method</u> :

Amount = Principal × (1+\frac{Rate}{12\times 100})^{12\times Time}

Or, $393,000 = $ P × (1+\frac{8.4}{12\times 100})^{12\times 25}

Or, $393,000 = $ P × (1.007)^{300}

Or, $393,000 = $ P × \frac{393,000}{8.10066}

∴   P = $ 48514.56

Hence The amount which she borrow as house loan is $ 48514.56  Answer

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