MILE6 Hand-In Assignment Instructions: Provide your response in the space provided for each part of the question. Please show as much work as possible to clearly show the steps you used to find the solution. If you plan to use an on-line mortgage calculator or spreadsheet, please be sure to clearly indicate your strategy. You are a financial advisor and Tony and Tina have come to you for advice. They have recently inherited $50 000 and they are considering buying a home. As their financial advisor, it will be your responsibility to determine if they can afford to buy the home now, or if they should continue to rent. Here is the information they have given you: Additional Costs: You know that when purchasing a home there are many additional costs. You advise Tony and Tina that they can expect to spend about $12 000 on additional costs. List some of the costs that they should expect and estimate their value so that they total $12 000. Remember to deduct these costs from the $50,000 for the down payment. Mortgage: The house they want is listed at $250 000 and they have the $50 000 inheritance to put towards the down payment and additional costs. The best rate you can find for them is 5.5% amortized over 20 years. Determine the monthly mortgage payment. GDSR: The house has annual heating costs of $2800 and the annual property taxes are $4200. Tony and Tina have a gross monthly income of $6800. Determine their GDSR and advise them if they can afford the home. Homeowner's Insurance: You advise Tony and Tina that they will require about $350 000 insurance to cover the property and the contents of their home. The home is located in Metro Winnipeg. Find the monthly cost of homeowner's insurance for both standard and comprehensive insurance ($500 deductible) and justify your choice of insurance to Tony and Tina. Conclusion: Once you have completed all of the calculations, you need to prepare a recommendation for Tony and Tina. You will either advise them to buy C