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Old 11-28-2011, 12:40 PM
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Default Fixed Mortgage question?

Bob and Mary Rodgers want to purchase anew house and feel that they can afford amortgage payment of $ 595 . They are ableto obtain a 29-year, 13.4 % mortgage (compounded monthly), but must put down 34 %of the cost of the house.Assuming they have enough savings for thedown payment, how expensive a house canthey afford?Answer in units of dollars
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