5. Suppose a single man has $120,000 in student loan debt, payable on the 20 year plan at 5% per year with monthly payments of $791.95. He also makes a car payment of $350 per month and total credit card payments of $175 per month. His annual income is $84,000. Interest rates are at 6.5% for a 30 year LPM (factor = .006321), lenders require a down payment of 5%, PMI costs. 78% of the OLB (divide by 12 for monthly payment) and insurance and taxes amount to 3.2% of the home value annually. Using a front ratio of 28%, he can afford a home priced at: A. $300,396 B. $210,278 C. $207,488 D. $179,809 E. $129,171 7. Suppose the bachelor in the previous problem must qualify for a loan using a back ratio of 36%. This bachelor can afford a home priced at: a. $300,396 b. $210,278 c. $207,488 d. $179,809 e. $129.171