You are ready to buy a house and you have $75,000 for a down payment and closing costs. Closing costs are estimated to be 4.5% of the loan value. You have an annual salary of $115,000. The bank is willing to allow your monthly mortgage payment to be equal to 25% of your monthly income. The annual percentage rate on the loan is 6.5% per year with monthly compounding for a 15-year fixed rate loan. Create a loan amortization table in Excel for the original problem (6.5%). Show formulas.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You are ready to buy a house and you have $75,000 for a down payment and closing costs. Closing costs are estimated to be 4.5% of the loan value. You have an annual salary of $115,000. The bank is willing to allow your monthly mortgage payment to be equal to 25% of your monthly income. The annual percentage rate on the loan is 6.5% per year with monthly compounding for a 15-year fixed rate loan. Create a loan amortization table in Excel for the original problem (6.5%). Show formulas.

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