Your parents want to buy a condo in Vancouver.

Banks use the affordability rule: no more than 32% ofgrossmonthly household income can go towards paying the mortgage, property taxes, heating costs and50%of the condo fees.

Their gross income is $10,000 per month, property taxes are $3,000/year, heating costs average $50/month and condo fees $400/month.

(a) What is the maximum monthly mortgage payment they could afford?

Under the Bank of Canada posted rate of j₂= 4.94%, how large of a mortgage would they qualify for if it is amortized over 25 years and paid monthly?Express your answer as a whole number.