1. You want to purchase a house that is priced at $300,000. You can get a loan for 80 percent of the bank's appraised value at 5.25% for 30 years with monthly amortization. The bank's appraiser has a theory that the value of a house is 95% of the asking price and appraises it accordingly. What will be your monthly payment if you take the loan?

2.Set up an amortization schedule for years 1 through 5 for Problem 1 showing annual mortgage payment amounts, yearly mortgage balances, principal, and interest for each year (total). (Do not do one monthly amortization schedule to answer this problem, but assume monthly compounding. Hint: Multiply the monthly payment in Problem 1 times 12 to get total annual payments)