pls answer and explain every step of how to solve this.

Example You want to buy your dream house, and the selling price is $700,000. You have $100,000 to use on a down payment and closing costs. - Closing costs are estimated to be about 4% of the sales price. - You have an annual salary of $160,000, and your bank is willing to allow your monthly mortgage payment to be up to 28% of your monthly income. - The interest rate is 6% per year with monthly compounding (0.5% per month) for a 30 -year fixed rate loan. Can you buy it? What is the maximum price you can afford