Intro You are working for a bank that is issuing 30-year mortgages. To meet your cost of capital, you need to price these mortgages using an interest rate (stated as an effective annual rate) of 14%. Part 1 | Attempt 1/2 for 10 pts. What is the most you can lend to a borrower who can only afford to pay $1,100 per month? (The first payment is made one period after the mortgage is issued, the standard assumption.) 0+ decimals Submit Part 2 - Attempt 1/2 for 10 pts. Your bank manager wants to create a loan program where borrowers can defer making their first monthly payment for 2 years. The borrower will still make monthly payments over 30 total years, but the first payment will be made 2-years (aka 24-months) after the loan is issued. (The last payment made 32 years after the loan is issued.) Interest will accrue during the first 2 years. Assume borrower in part 1 can afford 2,150 per month and the maximum loan amount under the conditions of part 1 is 191,987. (Note that this is not necessarily the same answer as part 1.) What is the maximum loan size under this new scheme? 0+ decimals Submit