Answer: Marcus can afford a loan of $167,597.76.
The mortgage factor tells us the monthly principal and interest rate payable for each $1000 of a loan.
Since we know the mortgage factor and the amount Marcus can make each month, we can determine the number of $1000 in his loan amount.
We do this by [tex]\frac{900}{5.37} = 167.5977654[/tex]
This means that Marcus' loan will have 167.5977654 thousands.
Therefore we can find the amount of mortgage loan as
[tex]167.5977654 * 1000 = 167597.7654[/tex]
