Answer the following questions, with an explanation for each answer that you select: 1. Which statement best explains the setup of the following payment function: =PMT(.06,30,-200000,50000,0)? Note that the 6% annual interest rate is expressed in decimal terms as .06. 1. The function is calculating the monthly payments of a $200,000 loan, 6% interest rate, over 30 years, with a lump-sum payment of $50,000 at the end of the loan. Payments are due at the end of every month. 2. The function is calculating the annual payments of a $200,000 loan, 6% interest rate, over 30 years, with a lump-sum payment of $50,000 at the end of the loan. Payments are due at the end of every year. 3. The function is calculating the monthly payments of a $200,000 loan, 6% interest rate, over 30 years, with a lump-sum payment of $50,000 at the end of the loan. Payments are due at the beginning of every month. 4. The function is calculating the annual payments of a $200,000 loan, 6% interest rate, over 30 years, with a lump-sum payment of $50,000 at the end of the loan. Payments are due at the beginning of every year. 2. When leasing a car, the residual value will be used to define which of the following? 1. the Pv argument in the FV function 2. the Pv argument in the PMT function 3. the Pmt argument in the FV function 4. the Fv argument in the PMT function 3. The recurring investments in an annuity investment would be used to define which of the following? 1. the Pmt argument in the FV function 2. the Pv argument in the FV function 3. the Fv argument in the PMT function 4. the Pv argument in the PMT function 4. Which of the following PMT functions will accurately calculate the monthly payments on a mortgage if the price of the house is $300,000, a down payment of $60,000 is made, the interest rate is 5%, the term of the loan is 30 years, and payments are due at the end of every month? 1. =PMT(.05/12,30*12,-300000,60000,0) 2. =PMT(.05,30*12,-300000,60000,0) 3. =PMT(.05/12,30*12,-240000) 4. EPMT(.05/12,30,-240000,0)