Comprehensive) You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. You have an annual salary of $36,000 (monthly income $3000) , and the bank is willing to allow your monthly mortgage payment to be equal to 25% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (.5% per month) for a 30-year fixed rate loan. How much money will the bank loan you?How much can you offer for the house?

a. How much is the Bank loan? (2%)

b. How much is the closing costs?(1%)

c. How much is the total price? (2%)