Use the table to determine the maximum 30-year loan, rounded to the nearest dollar, that you could obtain if you are given the loan rate 6% and the maximum house payment you can afford is $2,430 per month. $$\begin{array} { l c c c c }
\text { cellpadding="0" cellspacing="0" align="center" width } = " 99 \% " \text { border="1" } \end{array}$$

$\text { Monthly Cost to Finance } \$ 1,000$

$\begin{array}{lcccc}
&{\text { Number of Years Financed }} \
\text { Rate of } & 5 \text { Years } & 10 \text { Years } & 20 \text { Years } & 30 \text { Years } \
\text { Interest } & \mathrm{N}=60 & \mathrm{~N}=120 & \mathrm{~N}=240 & \mathrm{~N}=360 \
6.0 \% & & & & \
7.0 \% & 19.33 & 11.10 & 7.16 & 6.00 \
8.0 \% & 19.80 & 11.61 & 7.75 & 6.65 \
9.0 \% & 20.28 & 12.13 & 8.36 & 7.34 \
& 20.76 & 12.67 & 9.00 & 8.05
\end{array}$

A) $40,500
B) $4,374
C) $405,000
D) $52,488
E) $437,400

Question

Use the table to determine the maximum 30-year loan, rounded to the nearest dollar, that you could obtain if you are given the loan rate 6% and the maximum house payment you can afford is $2,430 per month. $$\begin{array} { l c c c c } 
\text { cellpadding="0" cellspacing="0" align="center" width } = " 99 \% " \text { border="1"> } \end{array}$$

$\text { Monthly Cost to Finance } \$ 1,000$

$\begin{array}{lcccc} 
&{\text { Number of Years Financed }} \
\text { Rate of } & 5 \text { Years } & 10 \text { Years } & 20 \text { Years } & 30 \text { Years } \
\text { Interest } & \mathrm{N}=60 & \mathrm{~N}=120 & \mathrm{~N}=240 & \mathrm{~N}=360 \
6.0 \% & & & & \
7.0 \% & 19.33 & 11.10 & 7.16 & 6.00 \
8.0 \% & 19.80 & 11.61 & 7.75 & 6.65 \
9.0 \% & 20.28 & 12.13 & 8.36 & 7.34 \
& 20.76 & 12.67 & 9.00 & 8.05
\end{array}$

A) $40,500
B) $4,374
C) $405,000
D) $52,488
E) $437,400

Quizplus · Accepted Answer

To find the maximum loan amount, divide the maximum house payment you can afford ($2,430) by the monthly cost to finance $1,000 for 30 years at a 6% interest rate. Unfortunately, the table does not provide the exact value for a 6% interest rate for 30 years, but it's necessary to use the given information to solve the problem. Assuming a similar structure as the provided rates, one would typically look for the monthly cost per $1,000 financed at the 6% rate for 30 years, then divide the maximum affordable payment by this cost to find the total loan amount. Without the exact figure, we cannot accurately calculate but would follow this method with the correct data.