5. PLEDGED-ACCOUNT MORTGAGE (5 points): Suppose upon graduating from college you receive a sizable gift/signing bonus of $50,000. Being a UCF grad, you also land a lucrative entry-level position, with the expectation of rapid advancement through the organization. In order to both put your money to work and to maximize the home you can purchase, you decide to undertake a pledged-account (or FLIP) mortgage. The home you want to buy costs $250,000. You plan to make a 10% down payment, deposit sufficient cash in a pledged account to lower your monthly mortgage payments in the early years of the (30-yr.) loan, and use the remainder to buy yourself a graduation present. The underlying mortgage rate is 3.00%, the deposit rate is 2.00%, and you want your payments to increase by 5% per year for the next five years. (Hint: set up a PAM/FLIP amortization schedule if desired.] How much cash can you retain to spend on your graduation present? 5. PLEDGED-ACCOUNT MORTGAGE (5 points): Suppose upon graduating from college you receive a sizable gift/signing bonus of $50,000. Being a UCF grad, you also land a lucrative entry-level position, with the expectation of rapid advancement through the organization. In order to both put your money to work and to maximize the home you can purchase, you decide to undertake a pledged-account (or FLIP) mortgage. The home you want to buy costs $250,000. You plan to make a 10% down payment, deposit sufficient cash in a pledged account to lower your monthly mortgage payments in the early years of the (30-yr.) loan, and use the remainder to buy yourself a graduation present. The underlying mortgage rate is 3.00%, the deposit rate is 2.00%, and you want your payments to increase by 5% per year for the next five years. (Hint: set up a PAM/FLIP amortization schedule if desired.] How much cash can you retain to spend on your graduation present? 5. PLEDGED-ACCOUNT MORTGAGE (5 points): Suppose upon graduating from college you receive a sizable gift/signing bonus of $50,000. Being a UCF grad, you also land a lucrative entry-level position, with the expectation of rapid advancement through the organization. In order to both put your money to work and to maximize the home you can purchase, you decide to undertake a pledged-account (or FLIP) mortgage. The home you want to buy costs $250,000. You plan to make a 10% down payment, deposit sufficient cash in a pledged account to lower your monthly mortgage payments in the early years of the (30-yr.) loan, and use the remainder to buy yourself a graduation present. The underlying mortgage rate is 3.00%, the deposit rate is 2.00%, and you want your payments to increase by 5% per year for the next five years. (Hint: set up a PAM/FLIP amortization schedule if desired.] How much cash can you retain to spend on your graduation present? 5. PLEDGED-ACCOUNT MORTGAGE (5 points): Suppose upon graduating from college you receive a sizable gift/signing bonus of $50,000. Being a UCF grad, you also land a lucrative entry-level position, with the expectation of rapid advancement through the organization. In order to both put your money to work and to maximize the home you can purchase, you decide to undertake a pledged-account (or FLIP) mortgage. The home you want to buy costs $250,000. You plan to make a 10% down payment, deposit sufficient cash in a pledged account to lower your monthly mortgage payments in the early years of the (30-yr.) loan, and use the remainder to buy yourself a graduation present. The underlying mortgage rate is 3.00%, the deposit rate is 2.00%, and you want your payments to increase by 5% per year for the next five years. (Hint: set up a PAM/FLIP amortization schedule if desired.] How much cash can you retain to spend on your graduation present