You are thinking about buying a house. To determine if this is feasible, you need to perform some calculations. Make sure to show all of your work, especially how the formulas are set up. You need to write something down for every part of each question. 1) Use the first three pages as a coversheet, and attach it to your project. Please do not write in the blanks beside the numbers. Make sure your name is on the top of the page. You need to save for a down payment. To find out how much you can save, you need to gather some income and savings information. 73 2a) What is your gross annual income? Every year, the U.S. Department of Housing and Urban Development (HUD) publishes the median family incomes (MFI) for various areas around the country. A chart with the latest HUD figures is located in D2L. Let's assume that you have graduated and you have just landed a really good job. However, since you have little to no experience, your income may be lower than average, so let's choose 80% Median Income. Pick your family size and use the income listed in the chart for the city/county where your future home is located. (Remember, if you pick a larger family size, you will need to choose a larger house to accommodate your family, so don't just pick a family size because it has a higher income figure). Make sure to indicate your family size. You can also visit the HUD webpage at: https://www.huduser.govportal/datasets/il/i12018/select_Geography.on /3 2b) You need to calculate your net annual income. To keep things simple, we will say that taxes will be 25% of your gross income. So, Gross Income - (0.25 x Gross Income) = Net Annual Income. / 2c) Suppose you decide to save 10% of your net monthly income. Find this amount. /% 2d) If you invest this money in an account that compounds monthly with an APR of 2.5%, how much will you have saved i) after 1 year? in) after 3 years? Before you buy a house, you need to determine what you can afford. _/4 3) The bank will not approve your mortgage loan if your monthly payment is greater than 28% of your gross monthly income. Find the maximum amount you can pay each month for your mortgage. Give a calculation to show that you can afford your mortgage. Now we get to the fun part. Happy house hunting