QUESTION 1: You want to take out a $200K mortgage to buy a house. The going interest rate for a 30 year fixed rate mortgage is 4.1% APR (annual percent rate). Under these conditions, what will be the size of your monthly mortgage payment?

QUESTION 2: You evaluate your budget, and estimate that the maximum monthly mortgage payment that you can comfortably afford to make is $1,427. The going rate for a 30 year mortgage is 3.8% APR. What is the maximum size of the loan that you can afford?