lext week, your friends. Paolo and Sharon want to apply to the Third Universal Bank for a mortgage loan. They are considering the purchase of a ome that is expected to cost $245,000. Given your knowledge of personal finance, they've asked for your help in completing the Home Affordability Norksheet that follows. To assist in the preparation of the worksheet, Paolo and Sharon also collected the following information: - Their financlal records report a combined gross before-tax annual income of $145,000 and current (pre-mortgage) installment loan, credit card, and car loan debt of $2,115 per month. - Their property taxes and homeowner's insurance policy are expected to cost $3,675 per year. - Their best estimate of the interest rate on their mortgage is 7.5%, and they are interested in obtaining a 15-year loan. - They have accumulated savings of $56,500 that can be used to satisfy the home's down payment and closing costs. - The lender requires a minimum 20% down payment, and installment loan affordability ratios that range from a minimum of 33% to a maximum of 38%. Use either your financial calculator or the maximum affordable mortgage loan formula to complete the following home affordabwity worksheet. (Note: When completing the form, round each dollar amount to the nearest whole dollar. Unless labeled differently, all of the following values represent dollar amounts. Also, some values calculated or used in the upper section of the table may also be used in the lower section. Round your percentage answer to two decimal places.) MAXIMUMAFFORDABLE NORTGAGE LOAN FORAULA Maximum Affordable Mortgage Loan = Matmam Mouits Laun homeon (1(10121)1+51) here i=interestrate iven these results, which statement regarding Paolo and Sharon's mortgage qualification process and the purchase of their $245,000 target home is rue? Paolo and Sharon qualify to purchase their $245,000 target home according to the Instaliment Debt Affordability Worksheet criterion. Paolo and Sharon do not qualify to purchase their $245,000 target home according to the Instaliment Debt Affordability Worksheet criterion