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11. You are ready to buy a house and you have $40,000 for a down payment and closing costs. Closing costs are estimated to be 5% of the loan value. You have an annual salary of $65,000. The bank is willing to allow your monthly mortgage payment to be equal to 28% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (5% per month) for a 30-year fixed rate loan. 1. How much money will the bank loan you? 2. How much can you offer for the house? 12. Suppose your business borrows $50,000 to purchase a piece of equipment. You will be borrowing the money and repaying it over a three-year period with a fixed payment at an annual interest rate of 8%. Use the table below to construct a loan amortization table for this loan. Begin Bal Payment Interest Principal End Bal 11. You are ready to buy a house and you have $40,000 for a down payment and closing costs. Closing costs are estimated to be 5% of the loan value. You have an annual salary of $65,000. The bank is willing to allow your monthly mortgage payment to be equal to 28% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (5% per month) for a 30-year fixed rate loan. 1. How much money will the bank loan you? 2. How much can you offer for the house

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