Answer:
£123,000
Step-by-step explanation:
Their combined income is ...
£18,500 +22,500 = £41,000
They can borrow 3 times this amount, or ...
3 × £41,000 = £123,000
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<em>Comment on this transaction</em>
The required deposit is 5% of 130,000 = 6,500, which is more than their savings. After this down payment is made, the remaining value is £123,500, which exceeds their borrowing power. It appears that Emma and Max need to find a house with a lower price.
