When Julies and Patty Bakery were “house hunting” 5 years ago, the mortgage rates were pretty high. The fixed-rate on a 30-year mortgage was 6.75% while the 15-year fixed rate was at 6%. After walking in and out through many homes, they finally reached a consensus and decided to buy a $150,000 two-story house in an up and coming suburban neighborhood in the East Area. To avoid prepaid mortgage insurance (PMI), they had to borrow from family members and come with 20% down payment and the additional required closing costs.

Since Julie and Patty Bakery had already accumulated significant credit card debt and were still paying off their college's loans, they decided to opt for lower 30-year mortgage payments, despite its higher interest rates.

Questions: What is Julie and Patty’s monthly mortgage payment under 30-year mortgage, interest payment for each month, and ending balance for each month over 360 months Had the couple opted for the 15-year mortgage, how much higher would their monthly payment be? What are the monthly payment, interest payment for each month, and ending balance for each month over 180 months? What can you conclude regarding the 30-year mortgage vs. 15- year mortgage? Compare the monthly payment and total interest paid for 30-year mortgage vs. 15-year mortgage?

Report Instructions: Prepare a write-up of your report of at least 3 pages or more, 12 points font and double space. The write-up should be a report format, summarizing all your findings and support your findings with numbers (using the questions asked as a guideline to form the report format). The report should have three main parts, introduction, body, and conclusion. The introduction should provide a brief introduction to what you will be discussing the project including the purpose of the assignment. In the body, students should summarize their findings in words and support the findings with the numbers. Insert the table that summarizes your finding where appropriate. Insert graphical representation if necessary where the text is being discussed. Use the tables to present your finding particularly when it involves comparison and numbers. Even when the data is presented in that table, the explanations of those numbers are needed. In conclusion, you need to provide the main finding of your report, reemphasize your key findings. There is no need to explain the calculation in the report. The report should not be laid out as an answer to each question. Attached all raw data, calculation, and regression output at the end of the project. The assignment report has to be well-written and well-organized and free from grammatical mistakes. Please format all the number to 4 decimals for easy comparison. Please place the $ or % where it is appropriate. Insert the raw data and long table at the end of the report. Create graphical representation as needed.

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