Starter Home Assignment SCENARIO: You and your spouse graduated from NIU two years ago. You are 27 years old. You have two children, ages 3 and 1. The breadwinner has just got a nice job offer in DeKalb, IL with a monthly gross salary of $5,000 per month. You currently live in a two-bedroom apartment and own a 1996 Honda Accord. Fortunately, you have no debt. Even more fortunately, your father- in-law has gifted you $10,000 toward a down payment on a house. In addition, you and your spouse have saved $10,000 toward that as well. Your assignment is to know how much you can designate to paying a home through create a monthly budget, and figure out the price of the home you can afford? what is the PITI for the home you plan to buy? Also figure out whether you can afford a better car? Hint: First, come up with a monthly budget and make sure the home mortgage payment line amount should be equal or lower than 20% of the monthly income. Second, you want to use the financial calculator to figure out the maximum mortgage loan this family can afford and then the highest price of the home this family can afford. Third, make the decision for this family on a home purchase including the price of the home (any price as long as it's equal or lower than they can afford). Fourth, based on the new home price, update your monthly budget and see whether they have left over for a better car. This assignment worths 40 points. It's due on 7/14