To calculate how much you can borrow now, you can use the formula for the present value of an annuity, which is a series of equal payments made at regular intervals. The formula is:

PV = PMT * [(1 - (1 + r)^-n) / r]

where:
- PV is the present value, or the amount you can borrow now
- PMT is the monthly payment you can afford, which is $9,000
- r is the monthly interest rate, which is the annual interest rate divided by 12 (6.72% / 12 = 0.56% or 0.0056 in decimal form)
- n is the total number of payments, which is the number of years times 12 (30 * 12 = 360)

Substituting the given values into the formula, we get:

PV = 9000 * [(1 - (1 + 0.0056)^-360) / 0.0056]

Solving this equation will give you the amount you can borrow now.

After calculating, the answer is approximately $1,391,884.91. So, the correct option is d. $1,391,884.91.

Question

To calculate how much you can borrow now, you can use the formula for the present value of an annuity, which is a series of equal payments made at regular intervals. The formula is:

PV = PMT * [(1 - (1 + r)^-n) / r]

where:
- PV is the present value, or the amount you can borrow now
- PMT is the monthly payment you can afford, which is $9,000
- r is the monthly interest rate, which is the annual interest rate divided by 12 (6.72% / 12 = 0.56% or 0.0056 in decimal form)
- n is the total number of payments, which is the number of years times 12 (30 * 12 = 360)

Substituting the given values into the formula, we get:

PV = 9000 * [(1 - (1 + 0.0056)^-360) / 0.0056]

Solving this equation will give you the amount you can borrow now.

After calculating, the answer is approximately $1,391,884.91. So, the correct option is d. $1,391,884.91.

Knowee AI · Accepted Answer

To calculate how much you can borrow now, you can use the formula for the present value of an annuity, which is a series of equal payments made at regular intervals. The formula is:

PV = PMT * [(1 - (1 + r)^-n) / r]

where:
- PV is the present value, or the amount you can borrow now
- PMT is the monthly payment you can afford, which is $9,000
- r is the monthly interest rate, which is the annual interest rate divided by 12 (6.72% / 12 = 0.56% or 0.0056 in decimal form)
- n is the total number of payments, which is the number of years times 12 (30 * 12 = 360)

Substituting the given values into the formula, we get:

PV = 9000 * [(1 - (1 + 0.0056)^-360) / 0.0056]

Solving this equation will give you the amount you can borrow now.

After calculating, the answer is approximately $1,391,884.91. So, the correct option is d. $1,391,884.91.

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