Answer:
The price of a home that can be purchased is $ 95,358.42
Step-by-step explanation:
Given : You have just been approved for a 30 year 5.5% fixed home mortgage. The monthly payment that you qualify for is $532.10.
We have to determine the price of a home that can be purchased.
Let the Price of home that can be purchased is $ x
Then ,
Mortgage value = $ x
From given table,
For a 30 year 5.5% fixed home mortgage,
Monthly payment of 5.58 is made per $ 1000 That is
Thus, For x mortgage value the monthly payment given is $532.10.
Thus,
Simplify for x, we have,
x = 95358.4229391
Thus, Rounding to the nearest cent , we get the price of a home that can be purchased is $ 95,358.42