You have just signed a contract to purchase your dream house. The price is $360,000 and you have applied for a $300,000, 30-year, 5.5 percent loan. Annual property taxes are expected to be $4,000. Hazard insurance will cost $1,200 per year. Your car payment is $800, with 36 months left. Your monthly gross income is $10,000.

Required:

1. Calculate the monthly payment of principal and interest (PI).
2. Calculate the one-twelfth of annual property tax payments and hazard insurance payments.
3. Calculate the monthly PITI (principal, interest, taxes, and insurance).
4. Calculate the housing expense (front-end) ratio.
5. Calculate the debt-to-income (back-end) ratio.

Note: For all requirements, round your answers to 2 decimal places. Do not round intermediate calculations.