Tax Expenses Example
Income per month / 20 = Tax expense
5129.16666667 / 20 = $256.458
Therefore, George has to pay monthly payments of $256.458 for his taxes.
Student Loan Example
The last 2 digits of your 5-digit number is the number of payments left. The payment value is your monthly
income divided by 12.
Ex. Since George’s last two digits for his George Brown ID is 50, he has 50 payments left for his student
loan. Since George’s monthly income is $5129.16666667, you divide this value by 12 to get $427.43.
Therefore, George has 50 monthly payments of $427.43 left on his student loan.
Heat/Cooling Cost Example
The payment value is your monthly income divided by 22.
Ex. Since George’s monthly income is $5129.16666667, you divide this value by 22 to get $233.14.
Therefore, George has to pay monthly payments of $233.14 for heating and cooling costs.

You will be graded on the following (3 out of 3 for a total of 3% of your overall grade):
• Determine the price of the house that you can afford. Provide the appropriate calculations (0.5%)
and the final price of the house (0.5%).
• If you qualify for the loan to value criteria, the maximum payment with the gross debt service
ratio and the maximum payment for total debt service ratio (0.33% each).
• 1 Paragraph summary of your findings that explains the rest of the sections (1%).
• Your submission must not be more than 2 pages. You will lose marks if it exceeds the 2-page limit.
• Plagiarism will be an automatic zero for the assignment.