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…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5MC: If you are saving the same amount each month in order to buy a new sports car when the new models...

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