Based on the GDS ratio of 32%, what is the maximum that you can spend on mortgage + taxes + heating annually for each gross income? (2 marks) a) $4,721 monthly b) $711 per week Michael is buying a townhouse for $341,800. He estimates his legal expenses will be $2,100. The bank is charging an application fee of $229. Land-transfer tax is 2.5% of the purchase price. Michael is making a down payment of 24%. (4 marks) a) Calculate the land-transfer tax b) Calculate the down payment c) Calculate the mortgage amount d) Calculate the total amount Michael will need on the closing date Use the percent method to reduce the expense items in the table below so that total expenses are in line with a monthly income of $2,885. Note that the last two items cannot be reduced. a) For each item that can be reduced, calculate the percent reduction. Round to the nearest tenth of a percent. (2 marks) b) For each item that can be reduced, calculate the dollar reduction. Round to the nearest cent. (2 marks) Item 1. Auto expense 2. Savings 3. Contingency 4. Food 5. Entertainment 6. Utilities 7. Miscellaneous 8. Travel 9. Mortgage payment 10. Loan Payment Expense $270 $220 $135 $490 $280 $165 $180 $230 $1,250 $195 Percent reduction Dollar reduction