Problem 3 A couple has a goal to save S35,000 in two years for purchasing a house. Assuming the APR displayed below, what is the minimum monthly contribution necessary to achieve this goal? Note: the first contribution will be made next month. Savings rate (APR): 3.60% Monthly interest rate: Number of payments: Monthly contribution: Assuming the couple meets the goal and desires to have a monthly mortgage payment that is the same amount as the monthly contribution, how large of a mortgage can they afford under the following terms? Amount of 10-year mortgage: Amount of 15-year mortgage: Amount of 30-year mortgage: 10-year mortgage APR: 15-year mortgage APR: 30-year mortgage APR: 4.80% 5.28% 5.88% Assuming the savings are used as a downpayment, respond Y (yes) or N (no) if the following house prices can be financed using a given mortgage that was evaluated above. House price: 10-year mortgage: 15-year mortgage: 30-year mortgage: $154,000.00 $174,000.00 $194,000.00 $224,000.00 $254,000.00