Michelle Duncan wants to know what price home she can afford. Her annual gross income is $45,000. She has $750 expenses per month in other debt and expects that her property taxes and homeowners insurance to cost $250 per month. She knows she can get a 7. 5%, 30 year mortgage so that her mortgage payment factor is 6. 99. She expects to make a 20% down payment. What is Michelle's affordable home purchase price? (Round your answer to the nearest $100)
a) $60,800
b) $254,800
c) $304,000
d) $42,500
e) $76,000