Question: Write out the mathematical expression for each calculation and show clearly the value you are solving for. You may use whatever tool you like (calculator,

Write out the mathematical expression for each calculation and show clearly the value you are solving for. You may use whatever tool you like (calculator, spreadsheet, abacus, slide rule, etc.) to solve for the solution. You qualify for a mortgage with a $2700 monthly payment. (40 points) a. Determine the size of your loan if your mortgage rate is 7% and you can obtain an amortization period of 20 years. How about 30 years? b. What is your loan size if your rate is 200bp higher? c. Calculate the remaining mortgage balance at the end of year 6 under scenario (a) from above. d. Assume you have to pay $2500 for legal fees, $1750 for title insurance and $900 for an appraisal. What is your effect cost of borrowing for this loan?

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