Over the past 40 years, interest rates have varied widely. The rate for a 30-year mortgage reached a high of 14.75% in July 1984, and it reached 3.31% in November 2012. A significant impact of lower interest rates on society is that they enable more people to afford the purchase of a home. In the following exercise, we consider the purchase of a home that sells for $125,000. Assume that we can make a down payment of $25,000, so we need to borrow $100,000. We assume that our annual income is $37,000 and that we have no other debt. Lending agencies usually require that no more than 28% of the borrower's monthly income be spent on housing. How much does that represent in our case? (Round your answer to the nearest cent.) $