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Please complete questions 2, 4, 7 & 8

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 $300,000 Down Payment 10% Interest Rate: 9% per year. Length of Payment 30 years. 3. PDF page 1: 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. Print this table into a single PDF page. 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: $450.000 Down Payment 20% Interest Rate 7.5% per year. Length of Mortgage: 15 years. 5. PDF page 2 Print area A9:E25 without spreadsheet frames into a single page PDF page. 6. PDF page 3: Print cell formulas for Cells A12:E13 from Step 5 above into a PDF page. 7. Mortgage lenders have the "36/28" rule in mortgage decisions. The 36/28 rule suggests that: a A borrower's monthly mortgage payment does not exceed 28% of his/her gross monthly income, and b. A borrower's total monthly payments (including monthly mortgage payment) do not exceed 36% of the gross monthly income. Refer back to Step 4 (ie the second mortgage payment table, not the first one), if a borrower is to qualify for the mortgage application for the house she has in mind, how much should the minimum gross a monthly and b. 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 S345 to pay back his/her college student loans, how much should the minimum gross a monthly and b. annual incomes be in order for the borrower to qualify the mortgage loan in Step 4 above using the 36/28 rule? D E 300000 0.1 Assumptions: House Price Downpayment % Interest Rate Length of Payment Monthly Payment First Payment Date 9% 1/15/2018 Mortgage Payment Schedule Period Beginning Balance Monthly Interest Applied to Principle Ending Balance