Elwood purchase

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Elwood wishes to purchase a home. She has saved up $13200 for a down payment. Basedon her earnings, she qualifies for a thirty-year mortgage with level monthly payments of$820 including escrow and a nominal interest rate convertible monthly of 5.85%. Herpayments are due at the end of each month. From each payment, $240 will be put asidein an escrow account for the payment of taxes and homeowners insurance. What is themost expensive house Elwood can buy if her aunt has promised to give her the moneyneeded for loan applications, inspections, and all other required buyer’s closing costs?

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