Todd and Samantha, a dual income couple in their early thirties, have seen a home that they really like. The home is

listed for $$600,000$ and the vendor is firm on the price. The couple have saved $$100,000$ for down payment and have

a maximum budget of $$2000$ per month for a mortgage loan payment. The have set this limit as they would still have

to pay for property taxes and other expenses.

The best mortgage loan offer they have is a $25$ year loan with $5\%$ compounded semi$-$annually from TruNord

Mortgages Inc. Can Todd and Samantha afford the $$600,000$ home given the provision for down payment and their

maximum budget?

a$.$ Yes, because the large down payment reduces the loan needed sufficiently to make the payment of $$2,000$

per month adequate.

b$.$ Yes, because the large down payment and dual income qualifies them for the loan.

c$.$ Yes. With a $5\%$ down payment of $100,000,$ they can even afford a $$2,000,000$ home.

d$.$ No$,$ because the loan they need is lower than the loan amount they can afford with $$2,000$ per month.

e$.$ No$,$ because the loan they need to buy the home will require a larger payment than their maximum budget of

$$2,000$ per month.