(6 points)

Tobin and his wife, Jennifer, both work and have a combined gross income of $110000 per year. They estimate the property taxes on their condo will be $1250 and insurance would be about $1020 per year. Tobin takes the bus to work, but Jennifer has a car payment of $280 per month, and they are both still paying off student loans for a combined total of $280 per month. Use this information to answer the questions below. Express your answers rounded correctly to the nearest cent!

(i) Determine how much of a monthly mortgage Tobin and Jennifer can afford. (Use the Total Expense Ratio from your class materials.) Payment = $

(ii) If the couple can get a 15-year mortgage with a fixed rate of 5.25%, use Excel's PV function to determine how much house they could afford Amount to Borrow = $