(6 points)

Neal and his wife, Jennifer, both work and have a combined gross income of $120000 per year. They estimate the property taxes on their condo will be $1500 and insurance would be about $1760 per year. Neal takes the bus to work, but Jennifer has a car payment of $240 per month, and they are both still paying off student loans for a combined total of $270 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 Neal and Jennifer can afford. (Use the Total Expense Ratio from your class materials.)
Payment = $
(ii) If the couple can get a 30-year mortgage with a fixed rate of 4%, use Excel's PV function to determine how much house they could afford
Amount to Borrow = $