Question $1(21$ points$)$

You are in the process of purchasing a new home. You intend to live there for $5-10$ years. You have an accepted offer of $$464,000,$ which is just under the asking price of $$468,900.$ The appraisal your lender obtains values the home at $$461,000.$

Your lender has quoted you loans with the following terms:

$\backslash$table$[[$Loan $1,$Loan $2,$Loan $3],[7\mathrm{.}10\%$ interest rate,$6\mathrm{.}70\%$ interest rate,$7\mathrm{.}85\%$ interest rate$],[30-$year amortization,$15-$ ear amortization,$30-$year amortization$],[$Monthly compounding,Monthly compounding,Monthly compounding$],[75\%$ loan$-$to$-$value $($LTV$)$ ratio,$80\%$ loan$-$to$-$value $($LTV$)$ ratio,$90\%$ loan$-$to$-$value $($LTV$)$ ratio$],[,,]]$

Determine the following:

$1$a$.$ The principal for each loan $($maximum amount you can borrow$).$

$1$b$.$ The down payment for each loan.

$1$c$.$ The monthly payment for each loan.

$1$d$.$ What the balance will be at the end of $5$ years for each loan.

$1$ e$.$ How much interest you will have paid at the end of $5$ years for each loan.

$1$f$.$ What the balance will be at the end of $10$ years for each loan.

$1g.$ How much interest you will have paid at the end of $10$ years for each loan.

Your answer:

$\backslash$table$[[,$Loan $1,$Loan $2,$Loan $3],[$Principal$,,,],[$Down Payment,,,$],[$Monthly Payment,,,$],[\backslash$table$[[$Balance at end of $5],[$years$]],,,],[\backslash$table$[[$Interest Paid at end of$],[5$ years$]],,,],[\backslash$table$[[$Balance at end of $10],[$years$]],,,],[\backslash$table$[[$Interest Paid at end of$],[10$ years$]],,,]]$