Please show how to solve this using excel and please show all formulas in the spreadsheet please!! Steven decides to buy a house with price of $500,000, Steven puts 20% down payment and considers a 15-year fixed rate mortgage to pay the remaining balance. The lender offers him three choices of the mortgage with monthly payments shown in the table as a., b., and c. Assume that the origination cost is $8,000. A. If the loan will be outstanding for 15 years, what is the effective cost for each choice? Which choice is most ideal? explain? B. Which mortgage choices are not properly priced? explain?

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Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.