Financial maths question, Help!!

Question

A bank offers you a rate of 10% on a 20-year mortgage to be paid in monthly repayments. If the most you can afford to pay in monthly repayments is $700, find the value of the biggest mortgage you can afford.

Answer 1

Still no work on your part. You can at least give it a try. What do we have here:

 

i% = 10% = .83333% per month

N = 240 months

PMT 700

FV = 0

PV = ?

 

The answer is $72,537