1. Victor earns a gross annual income of $93,571 and is buying a home for $196,300....

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1. Victor earns a gross annual income of $93,571 and is buying a home for $196,300. He is making a 15% down payment and financing the rest with a 30-year loan at 4.25% interest. + Monthly Mortgage Payment Per $1000 Borrowed Rate 15-year loan 20-year loan 25-year loan 30-year loan 3.00% 6.906 5.546 4.742 4.216 3.25% 7.027 5.672 4.873 4.352 3.50% 7.149 5.800 5.006 4.490 3.75% 7.272 5.929 5.141 4.631 4.00% 7.397 6.060 5.278 4.774 4.25% 7.523 6.192 5.417 4.919 4.50% 7.650 6.326 5.558 5.067 4.75% 7.778 6.462 5.701 5.216 5.00% 7.908 6.600 5.846 5.368 Answer: (a) What is the mortgage amount he will borrow? Show your work. (1 point for correct response, 1 point for showing work) (b) Can he afford this mortgage? Justify your response. (1 point for correct response, 1 point for justification) (c) What will his monthly mortgage payment be? Show your work. (1 point for correct response, 1 point for showing work) (d) What will his total payment for the house be? Show your work. (1 point for correct response, 1 point for showing work) (e) What is the amount of interest he will pay? Show your work. (1 point for correct response, 1 point for showing work) 1. Victor earns a gross annual income of $93,571 and is buying a home for $196,300. He is making a 15% down payment and financing the rest with a 30-year loan at 4.25% interest. + Monthly Mortgage Payment Per $1000 Borrowed Rate 15-year loan 20-year loan 25-year loan 30-year loan 3.00% 6.906 5.546 4.742 4.216 3.25% 7.027 5.672 4.873 4.352 3.50% 7.149 5.800 5.006 4.490 3.75% 7.272 5.929 5.141 4.631 4.00% 7.397 6.060 5.278 4.774 4.25% 7.523 6.192 5.417 4.919 4.50% 7.650 6.326 5.558 5.067 4.75% 7.778 6.462 5.701 5.216 5.00% 7.908 6.600 5.846 5.368 Answer: (a) What is the mortgage amount he will borrow? Show your work. (1 point for correct response, 1 point for showing work) (b) Can he afford this mortgage? Justify your response. (1 point for correct response, 1 point for justification) (c) What will his monthly mortgage payment be? Show your work. (1 point for correct response, 1 point for showing work) (d) What will his total payment for the house be? Show your work. (1 point for correct response, 1 point for showing work) (e) What is the amount of interest he will pay? Show your work. (1 point for correct response, 1 point for showing work)