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A bank will loan up to 75% of the equity in a home. A family purchased their home 8 years ago for $83,000. The home was financed by paying 20% down and signing a 30-year mortgage at 8.4% for the balance. Equal monthly payments were to be made over the 30 years. The market value of the house in now $115,000. After making the 96th payment, the family applied to the bank for the maximum loan. Show your work. *Write out the formula that you are going to use and then place the numbers in the formula appropriately. Round your answer to the nearest penny.* a. What is the amount of the original mortgage? b. What are the payments that the family will make on the mortgage? c. How much will the family owe on the mortgage after making their 96th payment? HINT: They will owe the bank 264 payments. d. How much equity does the family have in the home after making their 96th payment? e. What is the maximum loan that the bank will allow? I NEED FORMULAS AND WORK SHOWN (DO NOT USE EXCEL OR SHOW FORMULAS)
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