Michelle Duncan Wants to Know What Price Home She Can

Multiple Choice

Michelle Duncan wants to know what price home she can afford.Her annual gross income is $45,000.She owes $550 per month on other debts and expects her property taxes and homeowners insurance to cost $225 per month.She knows she can get an 8%,30-year mortgage so her mortgage payment factor is 7.34.She expects to make a 20% down payment.What is Michelle's affordable home purchase price? Round your answer to the nearest $100.

A) $110,700
B) $88,600
C) $199,300
D) $42,500
E) $254,800