Question

A customer can pay $900.00 per month on a mortgage payment.
Interest rate is 12% annually compounded continuously, and mortgage
terms is 15 years. Determine the maximum amount the customer can pay within the period.

Answer 1

P= ${Ce^r(e^{180r}-1)}\over {(e^r-1)}$ ,

where

C=900

r=12%/12=1%=0,01

P= ${{900e^{0,01}(e^{180\sdot0,01}-1)}\over {(e^{0,01}-1)}}$ =459036 $