Neal and his wife, Samantha, both work and have a combined gross income of $90000 per year. They estimate the property taxes on their condo will be $1050 and insurance would be about $1050 per year. Neal takes the bus to work, but Samantha has a car payment of $290 per month, and they are both still paying off student loans for a combined total of $270 per month. Use this information to answer the questions below. Express your answers rounded correctly to the nearest cent!

(i) Determine how much of a monthly mortgage Neal and Samantha can afford. (Use the Total Expense Ratio from your class materials.) Payment = $

(ii) If the couple can get a 30-year mortgage with a fixed rate of 3.35%, use Excel's PV function to determine how much house they could afford Amount to Borrow = $

Total expense ratio= (36% of borrower's monthly gross income)-(monthly housing expenses)-(monthly loan payment)

36% of borrower's monthly gross income= gross income before tax

monthly housing expenses =mproperty tax; homeowner's insurance

monthly loan payment= car laon; studentloan; credit card debt