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can you please answer all the questions with work and fill out the chart!!! NOTE: THE FOLLOWING PART OF THE ASSIGNMENT IS OPTIONAL (BUT FUN)

can you please answer all the questions with work and fill out the chart!!! image text in transcribed
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NOTE: THE FOLLOWING PART OF THE ASSIGNMENT IS OPTIONAL (BUT FUN) AND PROVIDES 7.5 POSSIBLE POINTS IN EXTRA CREDIT! Partially Amortizing (PA) Amortization Schedule In the sheet titled "PA AMORTIZATION SCHEDULE" assume all is the same as before EXCEPT there is a $50,000 balloon due in 30 years. 8. Fill in the spreadsheet for Ann. (It is called an amortization schedule or amortization calendar.) 9. Compute Ann's annualized IRR for the mortgage in the spreadsheet. (Use the net cash flow.) (9.a) What is the annualized IRR for the mortgage? (9.b) Is it higher or lower than the mortgage contract rate? (9.c) Why? 10. Plot Ann's mortgage balance in one graph. Place the graph here. 11. Plot Ann's monthly mortgage payment, interest payment and principal payment in one graph. Place the graph here. (note: don't include the final balloon payment in Ann's monthly mortgage payment) She forecasts four possible scenarios for house price appreciation (HPA). Optimistic Case: 4.5% annual HPA, hence 4.5/12% monthly HPA Base Case: 2.5% annual HPA, hence 2.5/12% monthly HPA Pessimistic Case: 0\% annual HPA, hence 0/12\% monthly HPA Very Bad Case: 6% annual HPA, hence 6/12% monthly HPA 12. Plot Ann's home equity every month under each of the four HPA scenarios in one graph. Place the graph here. 13. Assume Ann will make the required monthly payment every month for 30 years. (13.a) How much home equity will Ann have after 10 years ( 120 months) of payments under each of the four scenarios

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