Aishas gross income is $80,000 a year. She just purchased her first home with a 25-year amortization period and a 2.9%, compounded semi-annually, mortgage rate locked in for a 5-year term. Her payments are monthly. She will also have to pay $2,000 a year in heating costs, and $4,000 a year in municipal taxes. Hers was a conventional mortgage, and her GDS ratio was 0.30. How much did she pay for her house? Note: The balance of a loan is equal to the present value of the remaining payments.

1. $400,530
2. $384,509
3. $350,601
4. $320,424