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The case is designed to determine and evaluate the payment amount of a car

loan and a mortgage, based on your income. If you prefer, you may assume that
your household income is \$48,000 per year or \$4,000 per month. Based on your
income, you may spend 28 percent of your monthly income on housing and 10
percent on a car loan. You are to put a 3 percent down payment on the house and
a 10 percent down payment on the car. These will make the loan to value of your
loans to less than one: 97 percent on the house and 90 percent on the car.

1. Determine the car payment and mortgage payment with the following
conditions: your monthly household income, 10 percent for the car payment, and
28 percent for the mortgage payment. Also, assume a 10 percent down payment on
the car and a 3 percent down payment on the house.
2. Create an amortization schedule, and graph the components over time:
interest, principal, and balance.
3. Discuss the distributions of principal, interest, and the balance over the
life of the loan.

Quantitative Assignment 3