a. b. C. d. 1) Mortgage qualification with Income Payment to Income Ratio Example Know how to complete this table: Taxes and fees = 2.9% Annual Gross income $20,000 $30,000 $40,000 $50,000 $60,000 $80,000 $100,000 $150,000 GDS = 25% of monthly 1. $417 $625 $1,250 $3,125 =3125-0.029*401419/12 PV(0.05/12,360,-H15,0) 30-year Fixed Rate (5%) Mortgage Qualification $53,523 $80,284 $160,568 $401,419 $2,154.90 $401,419.01 Suppose that a bank does the following: Sets a loan rate on a prospective loan at 8 percent (where BR = 5% and = 3%). Charges a 1/10 percent (or 0.10 percent) loan origination fee to the borrower. Imposes a 5 percent compensating balance requirement to be held as non-interest-bearing demand deposits. Holds reserve requirements of 10 percent imposed by the Federal Reserve on the bank's demand deposits. Calculate the bank's ROA on this loan