(0) Mr and Mrs. Smith, married friends of yours who live in Nashville, need your help. They cannot decide whether they should continue to rent their apartment when their lease expires on December 31 of this year, or to buy a home and move January 1, 2024. Here are the facts they found from their research: Rental costs o One year lease renewal on 1/1/2024 with a continued monthly rent of $3,500 o The landlord will likely raise the rent annually starting in 2025 because Nashville is a hot market. Based on history, the rate of increase is expected to be 5% for the next several years. o Annual renters insurance: $420, which will likely increase at the rate of home values in Nashville o The landlord will return their security deposit of one-months rent ($3,500) when the Smith's end their lease Home buying costs o The down payment is 20% of the home purchase price o Loan fees average $1,500 and are included in the loan amount (and thus the monthly loan repayment). Loan fees cover the legal work and other costs to process the transaction. o The current annual interest rate on home loans for people with the Smith's credit rating is 7.0% o The term of the loan will be 30 years o Home values are expected to appreciate 5% annually over the next few years o Annual homeowners insurance is an estimated 0.5% of the current (appreciated) value of the home o Yearly maintenance is expected to be 1.0% of the current (appreciated) value of the home o Annual property taxes generally are 0.6% of the current (appreciated) value of the home o With changes to the tax law, Mr. and Mrs. Smith expect to take the standard deduction over the next four years rather than itemizing. Therefore, the mortgage interest they pay if they decide to buy will have no tax consequence. The Smiths have sufficient assets to pay the down payment, but if they pay the down payment, they will not receive the 5% appreciation they expect from interest, dividends, and appreciation of the down payment funds. 2 8/18/2023 the Smith plan to remain in Nashville for four years (until 12/31/2027). At that time, they expect to move to another city to be closer to family. At that point, they would sell the house (if they decide to buy one). When they sell, they can expect to pay a 5.4% realtor commission on the selling price of the house. With the Nashville market looking strong for the next few years, the Smith expect to sell their home at its appreciated value without offering a discount to the buyer. Mr and Mrs. Smith want to know the house purchase price that would make them financially indifferent between buying a home and renting an apartment. In other words, what is the breakeven home price? Please show completed Excel Spreadsheet