12.Sam and Kate are looking at houses and have found two houses that each one would like to buy.The couple qualified for an interest rate of 4.5% and they intend to finance the home for 30 years.They have also decided that before taxes and insurance, their house payment should be no more than $1000 per month.Sam is looking at a house priced at $200,000 while Kate is looking at a house selling for $215,000.

a. Find the monthly payment of the home Sam likes.

Formula usedSolve the problem

$___________.______

a.Find the monthly payment of the home Kate likes.

Formula usedSolve the problem

$___________.______

c. Which home or homes can they afford, the one Sam likes, Kate likes, both or neither?

Give your reason (s).