The Davidson's Have a Lump Sum Amount of $60,000 Saved

Multiple Choice

The Davidson's have a lump sum amount of $60,000 saved up and have the budget to pay $2,500 at the start of each month for mortgage payments over 25 years. Determine the price of the home they can afford given interest rates are at 5.95% compounded monthly.

A) $391,798
B) $451,798
C) $491,798
D) $551,798
E) $591,798