The case is designed to determine and evaluate the paymentamount of a car loan a

The case is designed to determine and evaluate the paymentamount of a car loan and a mortgage based on your income. If youprefer you may assume that your household income is $48000 peryear or $4000 per month. Based on your income you may spend 28percent of your monthly income on housing and 10 percent on a carloan. You are to put a 3 percent down payment on the house and a 10percent down payment on the car. These will make the loan to valueof your loans to less than one: 97 percent on the house and 90percent on the car.PROBLEM: Determine the car payment and mortgage payment with thefollowing conditions: your monthly household income 10 percent forthe car payment and 28 percent for the mortgage payment. Alsoassume a 10 percent down payment on the car and a 3 percent downpayment on the house.