Question 2 1 pts You buy a house with a sale price of $110,000. You put a down payment of $22,000 and take out a 15 year mortgage for $88,000 at

a nominal interest rate specified as 3.87% pa compounded monthly. Payments are due at end of each month. 1. What is the Effective annual interest rate on this loan? Enter this in the Answer Box. Express it as a decimal not as a percentage (for example if the rate is 4% pa, enter it as 0.04) 2. What is the monthly mortgage payment using the annuity formula? 3. Set up a monthly loan balance statement in Excel showing loan balance, payment made, interest paid that month and principal paid that month for months 1-180. If your annuity formula is applied correctly you should end with a zero loan balance at the end of 180 months.