4.A young married couple has carefully looked at their budget. After review, they can afford a monthly mortgage payment of $1,111.00. They go to their local banker and she offers them a mortgage of 5.40% APR with monthly compounding with a term of 30 years. The couple has enough savings to pay 20% down, so the mortgage will be 80% of the homes value. What is the mortgage that the couple can apply for based on their budget and the offered terms?

5.A young married couple has carefully looked at their budget. After review, they can afford a monthly mortgage payment of $1,111.00. They go to their local banker and she offers them a mortgage of 5.40% APR with monthly compounding with a term of 30 years. The couple has enough savings to pay 20% down, so the mortgage will be 80% of the homes value. With this mortgage and a 20% down payment, what priced house can the couple afford?