You want to buy a house and can afford a $15,000 down payment and a 51.000 monthly mortgage payment. If 30-year mortgage loans are available for a nominal rate of 3% per year with monthly compounding, what is the most expensive house you can afford? [Ans.: $252,191] 2. You want to buy a new car and have $5,000 available for a down payment. You can afford a monthly car payment of $400. The maximum length of loan you want to take is 5 years. Your credit rating is not so good and the best car loan you can get is for a nominal rate of 6% per year, with monthly compounding. The dealer is advertising a non-negotiable all-inclusive deal of $28,000 on the car you have had your eyes on for the last several months. Can you afford to buy this car under the stated terms? E) None of the above