A mortgage broker offers to sell you a mortgage loan contract that will pay $800 at the end of each month for the next 3½ years, at which time the principal balance of $45,572 is due and payable. What is the highest price you should pay for the contract if you require a return of at least 7.5% compounded monthly?

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The Answer of A mortgage broker offers to sell you a mortgage loan contract that will pay $800 at the end of each month for the next 3½ years, at which time the principal balance of $45,572 is due and payable. What is the highest price you should pay for the contract if you require a return of at least 7.5% compounded monthly?

A Mortgage Broker Offers to Sell You a Mortgage Loan