7.1 You and your significant other are contemplating the purchase of a home. Your combined family income is $80,000 per year. You know that mortgage lenders use a rule of thumb that the limit on the size of a mortgage loan is that no more than 30% of a family's income should go to the payment of principal and interest (PI, also sometimes known as IP). What is the maximum purchase value of a home that you and your partner could purchase assuming that you have a 10% down payment through savings? Assuming one annual mortgage payment instead of 12 monthly payments per year, answer this question for these four cases: . 20-year amortization 30-year amortization . mortgage interest rate of 7% . mortgage interest rate of 11%