\f\f\fed Cars Online | Touchless [ x Bb Finance 2: Borrowing Money ar X WA WA Finance 2 - Borrowing Mon. X N Netflix C a webassign.net/web/Student/Assignment-Responses/last?dep=28685023 x | + [-/6.5 Points] DETAILS MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Over the past 40 years, interest rates have varied widely. The rate for a 30-year mortgage reached a high of 14.75% in July 1984, and it reached 3.31% in November 2012. A significant impact of lower interest rates on society is that they enable more people to afford the purchase of a home. In the following exercise, we consider the purchase of a home that sells for $125,000. Assume that we can make a down payment of $25,000, so we need to borrow $100,000. We assume that our annual income is $53,000 and that we have no other debt. If we can afford to pay a monthly amount of $986.67, determine how much we can borrow if the term is 30 years and the interest rate is at the historic high of 14.75%. (Round your answer to the nearest dollar.) $ Can we afford the home? Yes O No If we can afford to pay a monthly amount of $986.67, determine how much we can borrow if the term is 30 years and the interest rate is 3.31%. (Round your answer to the nearest dollar.) $ Can we afford the home now? Yes O No How much more can you afford to borrow when the 30-year mortgage rate is at 3.31% compared to 14.75%? $ MY NOTES ASK YOUR TEACHER [-/3.75 Points] DETAILS You want to buy a house and can afford monthly mortgage payments of $850. You plan to take out a 20-year loan. The currently available rate is an APR of 3.72%. Your mortgage lender predicts that the rate could rise to 4.22% in the near future. If the APR rises from 3.72% to 4.22%, will the maximum loan amount that you can afford increase or decrease? By how many dollars?\f\f\f\f