Bonnie and Claude want to buy a house. They can afford monthly payments of $ XXXXXXXXXXThe bank offers them a mortgage at an interest rate of 3.10%, compounded semi-annually, with an amortization...

Bonnie and Claude want to buy a house. They can afford monthly payments of $1125.00. The bank offers them a mortgage at an interest rate of 3.10%, compounded semi-annually, with an amortization period of 25 years.

a) What is the maximum amount of money the bank will lend them for their mortgage? Show your work.

b) If they have $30,000 saved for a down payment, what is the maximum house price they can afford?