Answer using excel show formulas calculations and cell numbers all details from excel if excel is not used please dont answer the question

makes computations much simpler. 8. (EAIR with processing fees) Your local bank has offered you a 5-year, $100,000 mortgage. The bank is charging 1.2 points, and the processing fee to be paid immediately is $600. If the interest rate is 12% annually with one mortgage payment per year, calculate the EAIR of the loan. 126 fx x MORTGAGE WITH ANNUAL PAYMENTS Mortgage principal 100,000 Annual interest rate 125 Mortgage term (years Annual payment 27,740.97 PMT(B3,B4,-82,0,0) Mortgage points 1.2012 points 12 charged on $100,000 Loan $1,200 Fee Processing costs (5) 600 00 $500 Additional Fee for Processing Net mortgage received 98,200.00 -82-(1.2%B2)-BZ B 2"1-12%)-87) In the Rate function set the PV (meaning: the amount 98,200.00 no actually received) to the mortgage principal net of the points (100,000"(1-1.2%) minus the processing costs. Annual IRR (EAIR) 12.74% =RATE(84-85,88,0,0,B3) Check: Build an amortization table for the Mortgage Principal at beginning of year 100,000.00 Payment at end of year Interest component of payment (use EAIR) Repayment of principal Principal at end of year ONAME? ONAME? makes computations much simpler. 8. (EAIR with processing fees) Your local bank has offered you a 5-year, $100,000 mortgage. The bank is charging 1.2 points, and the processing fee to be paid immediately is $600. If the interest rate is 12% annually with one mortgage payment per year, calculate the EAIR of the loan. 126 fx x MORTGAGE WITH ANNUAL PAYMENTS Mortgage principal 100,000 Annual interest rate 125 Mortgage term (years Annual payment 27,740.97 PMT(B3,B4,-82,0,0) Mortgage points 1.2012 points 12 charged on $100,000 Loan $1,200 Fee Processing costs (5) 600 00 $500 Additional Fee for Processing Net mortgage received 98,200.00 -82-(1.2%B2)-BZ B 2"1-12%)-87) In the Rate function set the PV (meaning: the amount 98,200.00 no actually received) to the mortgage principal net of the points (100,000"(1-1.2%) minus the processing costs. Annual IRR (EAIR) 12.74% =RATE(84-85,88,0,0,B3) Check: Build an amortization table for the Mortgage Principal at beginning of year 100,000.00 Payment at end of year Interest component of payment (use EAIR) Repayment of principal Principal at end of year ONAME? ONAME