$${\mathtt{p}} = {\frac{{\mathtt{500}}{\mathtt{\,\times\,}}\left[{\mathtt{1}}{\mathtt{\,-\,}}{\left({\mathtt{1}}{\mathtt{\,\small\textbf+\,}}{\frac{{\mathtt{0.09}}}{{\mathtt{12}}}}\right)}^{{\mathtt{\,-\,}}\left({\mathtt{12}}{\mathtt{\,\times\,}}{\mathtt{30}}\right)}\right]}{{\mathtt{0.007\: \!5}}}}$$You can afford monthly payments of $500. If current mortgage rates are 9% for a 30-year fixed rate loan, what loan principal can you afford? If you are required to make a 20% down payment and you have the cash on hand to do it, what price home can you afford?
