You have just graduated from ACME State with a degree in Diesel Technology. Your new job takes you to Toledo, Ohio. You are now earning $$37,000$ per year. Your take home pay is $70\%$ of that gross total. You are anxious to purchase a home. You have the following monthly expenses:

Food $$255$

Utilities $$145$

Phone $$75$

Medical $$35$

Insurance $$130($including auto, health and life$)$

Clothing $$70$

Student loan payment $$135$

VISA payment $$65$

MasterCard Payment $$48$

Car payment $$211$

Miscellaneous $$105$

First calculate your monthly take$-$home pay. Next, add up the budgeted monthly expenses shown above. How much remains for a monthly mortgage PITI payment $($PITI $=$ principal, interest, taxes, insurance$)?$

$$1,622,67$

$$747\mathrm{.}67$

$$2,041\mathrm{.}67$

$$884\mathrm{.}33$

Assume that taxes and insurance $($T&I$)$ amount to $$80$ per month. How much remains to pay monthly mortgage principal and interest $($P&I$)?($Hint: Use your answer from the previous question$)$

$$1,971\mathrm{.}67$

$$795\mathrm{.}67$

$$677\mathrm{.}67$

$$804\mathrm{.}33$

Using the answer to the above question calculate the size of the mortgage loan you could obtain. Assume a $30-$year loan at $8$ percent annual interest.

$$109,616\mathrm{.}90$

$$119,494\mathrm{.}52$

$$101,858\mathrm{.}93$ mortgage

$$112,380\mathrm{.}46$

Using the answer from the above question, and assuming you have $10$ percent of the purchase price, what is the most you could pay for a home?

$$121,796\mathrm{.}56$

$$113,176\mathrm{.}59$

$$126,666,67$

$$134,444\mathrm{.}44$