Exactly. What's the most she can borrow? Not what's the most she can afford to repay.Trampoline Man said:I don't have the paper, but since her budget was $1000, the answer would be to identify the most she can borrow without spending over $1000, wouldn't it?
The highest amount she can afford to pay back is $970.62 when she borrows $80 000 over 10 years.
But she can also afford to borrow $130 000 over 30 years and make repayments of $953.89.
So ... what is the maximum amount that she can borrow?
This is just one of many questions that makes life difficult for students. Great questions for discussion in class one afternoon, but not very nice for people doing the exam - and I'm sure the markers won't enjoy having to mark such ambiguous questions.