Odarta can afford to pay $12,000 at the end of each of the next 30 years to repay a home loan. If the interest rate is 5.50%, what is the most Odarta can borrow?
A)$174,404.94
B)$869,225.74
C)$218,181.82
D)$360,000.00

Question

Quizplus · Accepted Answer

The most Odarta can borrow is calculated using the present value of an annuity formula, which takes into account the annual payment, the interest rate, and the number of periods. Given the annual payment of $12,000, an interest rate of 5.50%, and a period of 30 years, the calculation results in approximately $174,404.94.

Odarta Can Afford to Pay $12,000 at the End of Each