Given the following information on a fixed-rate fully amortizing loan, determine the maximum amount that the lender will be willing to provide to the borrower: loan term: 30 years; monthly payment: $800; interest rate: 6%.

The maximum amount that the lender will be willing to provide to the borrower is $9,006.

Explanation:

Fixed payment for a specified period is know as the annuity. We will use the formula of present value of present value of annuity payment.

APV = C x [ ( 1 - ( 1 + i )^-n ) / i ]

C = Monthly payment = $800

Interest rate =i 8% = 0.08

n = number of years = 30 years

APV = $800 x [ ( 1 - ( 1 + 0.08 )^-30)/0.08 ]

APV = $800 x 11.2578

APV = $9,006

So, The maximum amount that the lender will be willing to provide to the borrower is $9,006.

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20