Over the past 40 years, interest rates have varied widely. The rate for a 30-year mortgage reached a high of 14.75% in July 1984, and it reached 3.31% in November 2012. A significant impact of lower interest rates on society is that they enable more people to afford the purchase of a home. In the following exercise, we consider the purchase of a home that sells for $125,000. Assume that we can make a down payment of $25,000, so we need to borrow $100,000. We assume that our annual income is $40,000 and that we have no other debt. If we can afford to pay a monthly amount of $683.33, determine how much we can borrow if the term is 30 years and the interest rate is at the historic high of 14.75%. (Round your answer to the nearest dollar.) If we can afford to pay a monthly amount of $683.33, determine how much we can borrow if the term is 30 years and the interest rate is 3.31%. (Round your answer to the nearest Can we afford the home? Yes No dollar.) Can we afford the home now? (Yes No How much more can you afford to borrow when the 30-year mortgage rate is at 3.31% compared to 14.75%