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Question 8 Jim and Pam are currently renting and would like to purchase their own home. Assume Jim and Pam have saved a deposit of

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Question 8 Jim and Pam are currently renting and would like to purchase their own home. Assume Jim and Pam have saved a deposit of $125,000, and have a budget where they can save $700 per month and they currently pay $1,850 per month in rent, and current home loan interest rates are 5%. What is the maximum purchase price they can afford over a 25 year term? Assume monthly repayments. 1 A B

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