Use a spreadsheet (not formulas) to answer problems 9 through 13 below.
Suppose another mortgage lender offers you a fixed-rate 15-year mortgage at 2.95% APR. You have $20,000 saved as a down payment, and you can afford a maximum mortgage payment of $950 per month. You are interested in a certain house for sale, with firm selling price of $200,000.
Find the monthly payment for this house. Can you afford it, under the terms of this lender?
(Challenge): Suppose this same lender offers to increase the APR by only 0.05%, for each additional year added to the loan period beyond 15 years (so that a 16-year loan would have 3.00% APR, and a 17-year loan would have 3.05% APR, and so on), up to a maximum loan period of 25 years. Given these terms, does any combination of APR and loan period exist that would let you afford the house? If so, state the minimum number of additional years needed, the total resulting loan period, the resulting APR, and the resulting monthly payment.
Lee et al., Math in Society, §2.4 Loan Payments, Exercise 10