Assume the following items regarding your purchase of a home: You have saved up $20,000 toward the purchase of your home. Your salary is $36,000 per year. The bank will lend you up to a total amount where your monthly home loan payment will equal 28% of your monthly salary. The bank is offering you a 30 year loan (360 payments) with an APR of 6%. Closing costs are expected to be 4% of the total loan amount. In light of the above factors, answer the following questions: 1. What is the maximum amount the bank will lend you? 2. If you borrow this entire amount, how much house can you buy? (Remember, closing costs are expected to be 4% of the value of the home and that you have saved $20,000 toward your home purchase.)