Question

Bailey wants to buy a house, paying approximately $1000 per month. The bank estimates a 4.5% annual interest rate for 15 years. Which formula approximates the total value of a house Bailey can afford?

A. P = 1000[1 - (1 + 0.045/12)^-180/0.045/12.
B. P = 1000(0.045/12)/1 - 1(1 + 0.045/12)^-180.
C. 1000 = d[1 -(1 + 0.045/12)/0.045/12]^-180.
D. 1000 = d(0.045/12)/1 -(1 + 0.045/12)^180.

Answer 1

I=Principle × Rate × Time so 1000×4.5/100 × 15yrs