Question
Exercise 2 Mortgage Payment Table Retrieve Exercise02.xls from class website. Do the following: 1. Format the spreadsheet as necessary. 2.Suppose your parents will pay for
Exercise 2
Mortgage Payment Table
Retrieve Exercise02.xls from class website. Do the following:
1. Format the spreadsheet as necessary.
2.Suppose your parents will pay for your down payment, complete the Mortgage Payment Table using the following values:House Price:$300,000Down Payment: 10%Interest Rate:9% per year.Length of Payment: 30 years.First Payment:1/15/2018
3. Print area A9:E25 with spreadsheet frames. Make sure that your printout will fit into one page, centered, and properly labeled. Please DO NOT print any extra areas that do not contain any text or number.
4. Again, suppose that your parents will pay for your down payment, change the assumption figures to the following values, and redo the Mortgage Payment Table.House Price:$450,000Down Payment: 20%Interest Rate:7.5% per year.Length of Mortgage: 15 years.First Payment:1/15/2018
5. Print area A9:E25 without spreadsheet frames. Again, print the area into one page in good format.
6. Print cell formulas for Cells A12:E13.
7. Mortgage lenders have the "36/28" rule in their mortgage decisions. The "36/28" rule suggests that a borrower's monthly mortgage payment does not exceed 28% of his/her gross monthly income, and that the total monthly payments do not exceed 36% of the gross monthly income. Refer back to Step 2, if a borrower is to qualify for the mortgage application for the house s/he has in mind, how much should the minimum gross monthly and annual incomes be in order for the borrower to qualify?
8. Suppose that, in addition to the house mortgage, the borrower also has a 5-year 4.9% car loan of $18,000, and monthly payment of $345 to pay back his/her college student loans, how much should the minimum gross monthly and annual incomes be in order for the borrower to qualify the mortgage loan in Step 4 above using the 36/28 rule?
Required:Printouts from Steps 3, 5 and 6 and answers (with supporting computations) to Steps 7 & 8. Save your results as Exercise02.xls.
Grading:Printouts from Steps 3, 5 and 6: 20% each; printouts from Steps 7 & 8: 15% each; format: 10%.
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