1. Would a person with the following income and expenses qualify for a home based on the front end affordability ratio? Annual gross income = $60,000 Monthly principal and interest payment = $1,000 Monthly home insurance payment = $100 Monthly property tax payment = $100 Monthly credit card payment = $50 Monthly car payment = $250 Monthly student loan payment = $200

You would like to have a 10% down payment for a house valued at $100,000 in 3 years. You plan to put the money in your money market account earning 3%. How much do you need to save per month to reach your goal?

Group of answer choices

$158

$266

$3,325

$3,235