It is now nearly nine years since you have graduated and you have begun house hunting. You havefound three different houses that look promising. All of the houses are in high demand and you willhave to offer full asking price:iThe first house is a 980 sq. ft., 2-bedroom/1.5-bathroom ranch on 0.45 acres of land. It is pricedat $80,000 and has yearly taxes of $4,020.ii.The second house is a 2-bedroom/2-bathroom, 1,020 sq. ft. bungalow on 0.1 acres of land. It ispriced at $90,000 and has yearly taxes of $3,300.iliThe third house is a 3-bedroom/2-bathroom, 1,200 sq. ft. Cape Cod on 0.68 acres of land. It hasyearly taxes of $4,500 and a list price of $100,000.You have also been talking to a bank and have found that you will need a down payment of at least 10%on any house you choose. You have your earlier investment (from Part IV) as well as an additional$5,000 you have saved up over the years.Calculate the minimum down payments for the three houses.Which of the down payments for the three houses can you cover?Determine how much money you will use for a down payment on each house you can cover.(Note: you can choose the minimum down payments, use all of your savings for the downpayment, or choose any amount in between.)
