Linda's family would like to buy a house for Chiara. The family would like to take a mortgage for this purpose. They would like Chiara who is 4 years old to have her own accommodation when pursuing higher education after she turns 18, free of mortgage. Before approaching their financial institution for a mortgage, the family has estimated the following: Sell the truck for $67 000 and use the amount as a down payment for the mortgage. pay off the mortgage in equal annual amount of $34 500 for the first seven years. Plan to pay an annual 10% increase of the amount payable after the 7th year. i) Assuming an interest rate of 7%, how much can Linda's family borrow from their financial institution? ii) What does the loan-to-value ratio on the house represent? Calculate the anticipated loanto-value percentage. iii) Describe how the financial institution would determine whether Linda's family can afford the anticipated mortgage.