Two years ago, Pierre and Jane purchased a home for $300,000. It has increased in value over the past two years and is currently worth $400,000. Their current mortgage balance is $150,000. Calculate the credit limit they would receive on a home equity loan. Assume that the financial institution they deal with will provide home equity loans of up to 80% of the market value of the home, less outstanding mortgages. a) $170,000 b) $75,000 c) $300,000 d) $225,000

Maureen is a young professor with a gross income of $65,000. She pays $650 per month in rent and $175 per month on an outstanding student loan. She is considering the purchase of a $155,000 home which will have annual property taxes of $2,400 and heating costs of $1,500 per year. What monthly mortgage payment could Maureen afford based on a total debt service ratio of 40%? a) $1,017 b) $1,667 c) $1,842 d) $2,167

Petrov is a sole proprietor who sometimes uses his personal vehicle for business purposes. Last year, he drove a total of 23,000 kms of which 9,500 kms was for business. Petrov incurred the following automobile related expenses: (1) interest on automobile loan $1,360 (2) depreciation $2,150 (3) repairs and maintenance $ 920 (4) gasoline $2,750 insurance (5) general $2,495 insurance (6) business rider $ 680. What amount can Petrov claim as an eligible business expense? a) $3,787.83 b) $3,995.78 c) $4,276.62 d) $4,675.78