Alicia (first time home buyer) is looking to buy one bed-room condo, and she needs your advice on the maximum price she can afford to offer for her condo purchase when she buys one. She plans to use her savings to pay for the down payment at 20% of purchase amount, and she will get a mortgage for the remaining. The following info is available: Mortgage interest rate: 2.40% compounded semi-annually (25-year mortgage amortization with fixed rate for 5 years with same monthly mortgage payment) Alicia's annual income is CAD 90,000. Alicia qualifies for Gross Debt Ratio (GDS) of 35%, and with this GDS ratio she can afford CAD 2,250 for her monthly mortgage payment. Financial institutions use stress test rate of 4.94% to qualify for maximum mortgage loan one can borrow. . . 1. What maximum price Alicia can afford to offer for her condo purchase, assuming there is no stress test. 2. If Alicia buys a condo with her maximum amount calculated in 1, what would be the total interest for the first year? 3. Do you think stress test is helpful for Alicia? Explain