Your real estate agent mentions that homes in your price range require a payment of approximately $1,200 per month over 30 years at 9 percent interest.What is the approximate size of the mortgage with these terms?

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The present value of the mortgage can be calculated using the formula:PV = PMT * [(1 - (1 + r)^-n) / r]where:PV is the present value of the mortgagePMT is the monthly paymentr is the monthly interest raten is the number of monthsIn this case, we have:PMT = $1,200r = 9% / 12 = 0.0075n = 30 * 12 = 360Plugging these values into the formula, we get:PV = $1,200 * [(1 - (1 + 0.0075)^-360) / 0.0075]PV = $1,200 * [1 - (1.0075)^-360] / 0.0075PV = $1,200 * [1 - 0.2486] / 0.0075PV = $1,200 * 0.7514 / 0.0075PV = $128,035.20Therefore, the approximate size of the mortgage with these terms is $128,035.

Your Real Estate Agent Mentions That Homes in Your Price