Chris (for Christopher or Christine) and Sam (for Samantha or…

UltraBraveryCobra17  Chris (for Christopher or Christine) and Sam (for Samantha or… Chris (for Christopher or Christine) and Sam (for Samantha or Samuel) are a couple in their mid-20s. They recently graduated from George Brown, but after repaying their OSAP and other loans, they have no savings. In about five to eight years, they would like to have children and buy a house in Toronto or the suburbs immediately surrounding it if it can be afforded. Specifically, there are several issues you must address in this assignment:1. Chris’s current salary is $72,000, but it is anticipated that this salary will increase to $90,000 within five years.2. Sam’s current salary is $45,000. Sam’s salary will increase only at the rate of inflation, which will be ignored for this assignment. If the couple is a man and woman, you do not need to make Sam a woman because the salary is lower.3. To calculate the net income, subtract 25% for income tax, CPP premiums, and EI premiums for Chris. Subtract 22% for the same deductions for Sam.4. Chris and Sam will have two children. While they could take advantage of the reduction in daycare expenses, the $10 per day fee will not come into effect until September 2025 (https://www.cbc.ca/news/canada/toronto/ontario-child-care-deal- ford-trudeau- 1.6399694#:~:text=The%20province%20says%20the%20agreement,the%20end%20of%20 the%20year). They will still have other expenses such as clothing, food, and recreational activities. For purposes for this assignment, neither spouse can work from home, nor can there be any parents or anyone else who could offer free or inexpensive childcare. Chris and Sam are solely responsible for childcare, which means they must choose between sending the children to day care or have one spouse stay at home with the children.5. Choose a home for Chris and Sam. It can be a detached house, townhouse, condominium, or other suitable accommodation. You need to identify a specific home; its cost; the taxes; and condominium fees, if applicable. There needs to be support for the choices and costs. You need to include the website address to support your choice. You also need to show how Chris and Sam will save for the down payment and the mortgage for which they can qualify. This is calculated by using the PMT function in Excel.A mortgage for the house should, ideally, be 80 percent or less of the value of the house, but it cannot exceed 95 percent of the value of the house. There are two websites that can help you, but you’ll see that they are essentially the same calculator. The websites are: https://www.ratehub.ca/mortgage-payment-calculator and https://www.realtor.ca/calculator. Please use either website as both will show complete closing costs including land transfer taxes. Often other sites, such as those from banks don’t include those extra costs.They will take some time to use because you must ensure that you enter the wages of Chris and Sam. Also, because they are first-time home buyers, you must use a 5-year term with monthly payments, and most importantly, you must use 5.25% as the mortgage rate. This will show if they can qualify for the mortgage. You can go back and readjust this mortgage rate to determine monthly payment amounts. 6. The couple must purchase a car. It can be either a new or used one. They will borrow to pay for the car. The payment amounts must be shown.Table 11-10-0190-01 from Statistics Canada shows the median annual family income for 2020, in, the most recent statistics available, is $84,200 for Canada, $88,000 for Ontario and $90,700 for Toronto (https://doi.org/10.25318/1110019001-eng).A Canadian website, Generation Squeeze, produced a graph showing how difficult it is for young adults to afford housing in Ontario.You can read the report at https://www.gensqueeze.ca/housing_affordability_analysisor this assignment, consider the problems with housing. Specifically:1. Complete the calculations to determine if Chris and Sam can afford a house. Comment on how difficult it was to complete the calculations.2. Address the problems of housing, particularly in Toronto. What reasons brought about this crisis and how do you see it being resolved? And what impacts on society do high housing prices, whether through purchasing or renting, have?3. You need to include at least one reliable source to support your conclusionsImage transcription textThe Gap: Ontario Home Prices Relative to Young People’s Full-Time Earnings 1,200,000 30 28 26 24 900,00022 20 18 16 Earnings & Home Prices (2021 $) 600,000 Years to Save & Interest Rate 15 12 10 9 9 108 300,000 5555 554 NA 1976 1986 1996 2006 2016 2021 Years Years for typical 25-34 yr old to s… Show more… Show more BusinessBusiness – Other