1 . How do you do this in excel?

Create a drop-down box that will allow you to select between either a 70% LTV or an 80% LTV. Create a second drop-down box to select either a mortgage participation or no participation option with the lender based on the below information.

Given different combinations (four different combinations) with the drop-down boxes, the interest rate will change accordingly and will be as follows:

• LTV of 70% without Participation Interest Rate of 5%
• LTV of 80% without Participation Interest Rate of 6%
• LTV of 70% with Participation Interest Rate of 3%
• LTV of 80% with Participation Interest Rate of 4%

To program a cell to display the interest rate given the above parameters, you will need to create an IF statement combined with an AND statement, as there are two conditions (LTV and Participation) that will determine the interest rate.