Question 3 (based on Week 1 Excel Examples - Chapters 1-4)

You are planning on buying a new house, and want to make sure you can afford the monthly payments.

The house you picked will necessitate you borrow $300,000. You think you can get the following

mortgage terms: borrow $300,000 at a fixed quoted (nominal) annual rate of 3.775%; to be paid off in

equal monthly payments over 15 years.

Compute the required monthly payment, and prepare an amortization table, showing for each month

the beginning balance, payment, payment applied to interest, payment applied to principal, and ending

balance. (assume monthly compounding) (Note: This question doesn't require a written answer.)