9514 1404 393
Answer:
$298,853.76
Step-by-step explanation:
36% of your gross monthly income is ...
0.36 × $5600 = $2016
If you're already spending $475 on monthly payments, the amount the bank says you can afford for a mortgage loan is ...
$2016 -475 = $1541
__
The amortization formula can be used to find the corresponding loan value. That formula is ...
A = P(r/12)/(1 -(1 +r/12)^(-12t))
where A is the monthly payment on a loan of P at interest rate r for t years.
Filling in the known values, we have ...
1541 = P(.0465/12)/(1 -(1 +.0465/12)^(-12·30)) ≈ 0.00515636808·P
Then the maximum loan you can obtain is ...
P = $1541/0.00515636808 ≈ $298,853.76
