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Mathematics, 01.03.2021 19:00 Ully4559
The Payans have just learned that the bank will approve them for a mortgage at an APR of 4.3% for 30 years if they meet
the back-end ratio requirement. To determine whether they'll meet the requirement, the back-end ratio needs to be
calculated with the actually monthly payment rather than the estimate used in part A. Use this monthly payment formula
to calculate the Payans' monthly mortgage payment.
Monthly payment formula:
(1) (1 + )
M-
where
(1 + $)
M = monthly payment
p-principal
interest rate
t-number of years
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Answers: 3
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