Suppose Rachel and Nadia buy a house and have to take out a loan for $191000. If theyqualify for an APR of 4.25% and choose a 30 year mortgage, we can find their monthlypayment by using the PMT formula. If Rachel and Nadia decide to pay $1500 per month, wecan use goal seek to see how many years it will take to pay off the loan.Use the PMT function and goal seek (as needed) to answer the following questions aboutRachel and Nadia's mortgage.a. What is their monthly payment on the 30 year loan?$b. If they qualify for the same APR on a 15 year loan, what will the new monthly payment be?$c. If Rachel and Nadia have monthly payments of $1500 each month, how long will it take forthem to pay off their loan?yearsd. If they want to have monthly payments of $650 and still pay the loan off in 30 years, whatinterest rate would they have to qualify for?%

Given the following:Loan Amount : $191,000APR : 4.25% or 0.0425 (per annum) Time Period : 30…

Answered: Suppose Rachel and Nadia buy a house…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1)Liam has three other options for purchasing the Charles Street property. In the first scenario, he could borrow additional money to fund a renovation of the building. He wants to determine the monthly payment for the first scenario.a)In cell G10, insert a formula using the PMT function using the monthly interest rate (cell G6), the loan period in months (cell G8), and the loan amount (cell G4) to calculate the monthly payment for the renovation scenario.
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Answer the Financial Literacy question below in the screenshot.
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