Mark and James are looking to buy a house. Mark works as an analyst for a large investment firm and earns $150,000 per year. James is a commercial loan underwriter and makes $175,000 per year. They have prepared a personal budget and believe they can afford to spend as much 25% of their gross monthly earnings on mortgage payments. Mark and James will finance their purchase with a 5-year, 4% fixed-rate mortgage loan, with a 20-year amortization period. They have saved up $75,000 to use as a down payment for a house. CMHC premiums on mortgage insurance are given in the table below. CMHC Premiums: Loan to Value Premium Up to 65% 1.5% From 65.01% to 75% 2.5% 3.0% From 75.01 to 85% From 85% to 95% 4.5% What is the maximum price of the house that Mark and James can afford to buy? Mark and James are looking to buy a house. Mark works as an analyst for a large investment firm and earns $150,000 per year. James is a commercial loan underwriter and makes $175,000 per year. They have prepared a personal budget and believe they can afford to spend as much 25% of their gross monthly earnings on mortgage payments. Mark and James will finance their purchase with a 5-year, 4% fixed-rate mortgage loan, with a 20-year amortization period. They have saved up $75,000 to use as a down payment for a house. CMHC premiums on mortgage insurance are given in the table below. CMHC Premiums: Loan to Value Premium Up to 65% 1.5% From 65.01% to 75% 2.5% 3.0% From 75.01 to 85% From 85% to 95% 4.5% What is the maximum price of the house that Mark and James can afford to buy