Your friends were excited to hear you have chosen accounting for a career. They have several practical questions regarding money and interest (time value of money). Please assist your friends by answering their respective questions. For each question:Estimate without using a table, calculator, etc. Document the “step-by-step” detail showing them how you solved the question. NOTE: To solve use one of the following:EXCEL Include all the detail steps for whichever tool you choose. For example, if using EXCEL show all formulas (copy so reader could duplicate your work). If using a business calculator, in detail in proper order show numbers and buttons you input to obtain your answer. Provide a one to three sentence written explanation to your friend explaining the basic time value of money concept(s) impacting the solution. **Home Mortgage Payment Analysis***Scenario:*- **Friend #3:** "I found my dream house in St. Paul but I am not sure I can afford it. I have the $15,000 for the down payment but it is the monthly payments that I am not sure about. What will my monthly payments be?"**Financial Details:**- **Selling Price:** $215,000- **Down Payment:** $15,000- **Loan:** 30-year $200,000 loan at 6%**Mortgage Payment Calculation:**1. **Principal and Interest:** - Calculate the monthly payment using the formula for a fixed-rate mortgage: \[ M = P \frac{r(1 + r)^n}{(1 + r)^n - 1} \] Where: - $M$ is the total monthly mortgage payment. - $P$ is the loan principal (in this case, $200,000). - $r$ is the monthly interest rate (annual rate/12, so 0.06/12). - $n$ is the number of months over which the loan is amortized (30 years × 12 months).2. **Other Costs:** - Consider taxes, insurance, and HOA fees, if applicable, which are not included in this basic calculation.**Spreadsheet Explanation:**- **Section A:** Blank for calculations or additional notes. - **Section B:** Grey-highlighted area presumably for main table content or important notes; often reserved for input data or summarized outputs in a spreadsheet. - **Section C:** Blank for extended calculations or further data.This arrangement allows users to input and analyze their mortgage calculations, and offers space for additional financial details, such as insurance and tax considerations, which can impact overall affordability.

Selling Price 215000 Down Payment 15000 Loan Required 200000 at the rate of 6% per annum for 30 yearsP = Payment made every month i = monthly interest rate = 6%/12 =0.005 n =no. of months = 360 Home Loan = 200,000 Home Loan = P [(1+i)n - 1/ i(1+i)n ] 200,000 = P[(1+0.005)360-1/0.005(1+0.005)360 200,000 = P[(1.005)360 - 1 / 0.005(1.005)360 200,000 = P[6.02-1 / 0.03] 200,000 = P [5.02/0.03] P = 200,000 / 167.33 P = 1195.24 Payment made every month for the Home Loan is 1195.24