Sam has an annual income of $78,000 and wants to buy a home.He will need a home mortgage loan to do that.Current mortgage interest rates are 6% for a 30 year loan.Given the type of home he would like to buy, annual real estate taxes and homeowner's insurance would be about $4,800 and $1,500, respectively.

Question 4 (8 points) -Given the above facts, and using a 36 percent back-end ratio, what total monthly mortgage loan payments (including taxes and insurance, i.e., PITI) could Sam afford if his monthly car loan payment, student loan payment and credit card payment were $470, $350 and $250, respectively?Show work