Zach and his wife, Jennifer, both work and have a combined gross income of $105,000 per year. They estimate the property taxes on their condo will be $1250 and insurance would be about $1830 per year. Zach takes the bus to work, but Jennifer has a car payment of $345 per month, and they are both still paying off student loans for a combined total of $235 per month. Use this information to answer the questions below. Express your answers rounded correctly to the nearest cent.

(i) Determine how much of a monthly mortgage Zach and Jennifer can afford. Total expense ratio = 2%

Payment =

(ii) If the couple can get a 20-year mortgage with a fixed rate of 7.55%, use Excel's PV function to determine how much house they could afford.

Amount to Borrow =