# people often are lost when it comes knowing how much they can borrow buy their homes constru

People often are lost when it comes to knowing how much to they can borrow to buy their homes. Construct a simple spreadsheet application with the following as input variables The interest rate (% pa compounded monthly) The amount to be borrowed. The term in years of the loan. The combined salary of the people buying the house. The output of the calculator should include (a) The monthly repayment for the loan. (b) An estimate of when the loan would be half paid off. (c) The percentage of the combined salary the repayment represents. (d) The total interest paid out over the full term. (e) The increase in repayment per month, should there be a 1% increase in interest rates. (f) The decrease in the term if they switch to fortnightly repayments instead of monthly. Present printouts for the following examples. 1. A couple on \$150,000 wanting to borrow \$500,000 over 30 years at 4.5% pa 2. A sole income earner on a salary of \$80,000 wanting to borrow \$200,000 over 25 years at 5% pa 3. A student earning \$30,000 taking a share in a house requiring a loan (for his part) of \$100,000 over 10 years at 6% pa.