Build a model to track the balance of your 30 year mortgage loan. Assume an initial...

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Build a model to track the balance of your 30 year mortgage loan. Assume an initial balance of $250000. The interest rate is based on your FICO score of 794. Use approximate matching techniques to look up the interest rate from the table to the right. Note that you will need to create the lookup values to use based on the FICO ranges provided. Note that the FICO Ranges and term of the loan will not change. All rates are stated as APRS. Use your models to answer the following questions: What is the interest rate on the loan? What is the starting balance in the second month? What is the total interest cost over the life of the loan? Your answer FICO Term (years) Initial Balance Correct Answer 4.5% $249,670.79 $206,016.78 794 FICO Range Interest Rate Lookup Value 30 500-620 8.5% 500 $250,000 621-680 6.6% 621 681-720 5.8% 681 721-800 4.5% 721 801+ 3.4% 801 Month Rate Starting Balance Payment Interest Cost Ending Balance 1 2 3 45678 9 10 11 12 + Reset Parameters Build a model to track the balance of your 30 year mortgage loan. Assume an initial balance of $250000. The interest rate is based on your FICO score of 794. Use approximate matching techniques to look up the interest rate from the table to the right. Note that you will need to create the lookup values to use based on the FICO ranges provided. Note that the FICO Ranges and term of the loan will not change. All rates are stated as APRS. Use your models to answer the following questions: What is the interest rate on the loan? What is the starting balance in the second month? What is the total interest cost over the life of the loan? Your answer FICO Term (years) Initial Balance Correct Answer 4.5% $249,670.79 $206,016.78 794 FICO Range Interest Rate Lookup Value 30 500-620 8.5% 500 $250,000 621-680 6.6% 621 681-720 5.8% 681 721-800 4.5% 721 801+ 3.4% 801 Month Rate Starting Balance Payment Interest Cost Ending Balance 1 2 3 45678 9 10 11 12 + Reset Parameters