This workshop aims to construct an amortization schedule for a mortgage loan similar to the one in Exhibit 5 of Chapter 3 of the CFA textbook. Consider a 30-year (360-month), $100,000 mortgage with an 8.125% APR mortgage rate. Create a set of input cells for maturity, face value, and mortgage rate using a different color for each. Assume that you use this loan to finance 80% of the purchase of a house with a $125,000 price tag, and that you pay the remaining 20% in cash as a down payment. the pmt= 742.50

1. Assume that you decide to pay down the mortgage faster by adding an additional $100 to your monthly payment. How soon you can pay down the entire balance of $100,000 in this case? How much is total interest you would pay under this scenario? By how much would you need to increase your monthly payment to cut the repayment period in half?
2. Suppose you receive a call from a second loan officer offering you $3,000 cash back upfront in return for raising your mortgage rate by 0.5%. Would you take this offer?
3. Suppose interest rates are on a downward trend. The current mortgage rate is down by 2.5% compared to when you were contemplating buying a house. Assuming that you can keep paying the same monthly mortgage payments and the same down payment as before, what would be the price of the house that you could now afford?