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You are thinking of purchasing a home. The house costs $350000. You have $50,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 15-year mortgage that requires monthly payments and has an annual interest rate of 6% per year. What will be your monthly payments if you sign up for this mortgage? Draw the amortization schedule on a monthly basis using Excel. Suppose you can only afford a monthly mortgage payment of $2,600 per month, would you purchase this house, if the interest rate increases to 7% per year? describe.

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