Mortgage Analysis

You must use the FINANCIAL FUNCTIONS in EXCEL to calculate your answers.

You are planning to purchase a house that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.99% on a 30-year mortgage. 1. Use function PMT to calculate your mortgage payment. 2. Use function PV to calculate the loan amount given a payment of $1500 per month. What is the most that you can borrow? 3. Use function RATE to calculate the interest rate given a payment of $1500 and a loan amount of $400,000.