Extended Learning Exercise Construct the spreadsheet used in Example 11-6. Use this spreadsheet as a starting point to answer the following questions. Be sure to clearly state your assumptions.

a. How sensitive is the decision to the amount of the down payment for the purchase option? If a down payment of less than 20% is used, you will need to account for monthly mortgage insurance (about $56/month).
b. How sensitive is the decision to the type of mortgage acquired? You can look at different repayment periods (15 or 20 years) as well as the impact of points paid on the loan. One point is equal to 1% of the loan value and is paid as part of the closing costs.
c. Interest paid on a mortgage is tax deductible if you itemize deductions on your personal income tax return. Discuss how you would incorporate this and what impact it would have on the decision to purchase versus rent a home.