You want to buy a house and wonder what you can afford. Banks look at collateral, creditworthiness and capacity (ability to pay) when making loans. Assume you have sufficient down payment and credit score. Your bank has a requirement of 28% housing expense ratio and your gross annual income is $70,000. How much can you afford to spend on housing each month? a) $5,833 b) $1,633 c) $2,333 d) $19,600