Develop a spreadsheet model to determine how much a person or a couple can afford to spend on a house Lender guidelines suggest that the allowable monthly housing expenditure should be no more than 28 of monthly gross income From this you must subtract total nonmortgage housing expenses which would include insurance and property taxes and any other additional expenses This defines the affordable monthly mortgage payment In addition guidelines also suggest that total affordable monthly debt payments including housing expenses should not exceed 36 of gross monthly income This is calculated by subtracting total nonmortgage housing expens and any other installment debt such as car loans student loans credit card debt and so on from 36 of total monthly gross income The smaller of the affordable monthly mortgage payment and the total affordable monthly de payments is the affordable monthly mortgage To calculate the maximum that can be borrowed find the monthly payment per 1 000 mortgage based on the current interest rate and duration of the loan Divide the affordable monthly mortgage amount by this monthly payment to find the affordable mortgage Assuming a 25 down payment the maximum price of a house would be the affordable mortgage divided by 0 75 Use the following data to te your model Total monthly gross income 5 500 Nonmortgage housing expenses 350 Monthly installment debt 500 Monthly payment per 1 000 mortgage 7 25 Enter the formulas for the spreadsheet that implements this model A 1 Total Monthly Gross Income 2 Allowable Monthly Housing Expenditure 3 Total Non Mortgage Housing Expenses 4 Affordable Monthly Mortgage Payment 5 Monthly Installment Debt 6 Total Affordable Monthly Debt Payments 7 Affordable Monthly Mortgage 8 Monthly Payment per 1000 mortgage 9 Maximum that can be borrowed 10 Down Payment B 5 500 00 V 350 00 500 00 7 25 Y 25 C Max Percentage Max Percentage D 0 28 0 36 AWY