1. You are excited to buy your first house. Based on your credit history, the bank...

1. You are excited to buy your first house. Based on your credit history, the bank is willing to lend you money at 7 percent interest compounded monthly. You can afford monthly payments of $1,364. How much can you afford to borrow? Assume the mortgage is for 23 years.

2. You currently have $20,000.01 in a bank account that pays you 5 percent interest annually. You plan to deposit $800 (starting 1 year from now) every year for the next 10 years in the same account. How much are you going to have in that account at the end of 10 years?

Expert Solution

calc:

jeff jeffy answered 2 years ago

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