1. Assume that a family is purchasing a typical house by making a $25,000 down payment and then financing a $260,000 mortgage at an annual interest rate of 3.5% (a typical rate for a 30-year loan in early 2020). The size of their monthly payment will depend on the term of the mortgage.

The formula M=P rn1-1+rn-nt or the Excel function pmt can be used to compute these monthly mortgage payments. If using Excel the 3 arguments of function pmt are:

Rate (the monthly interest rate): 0.035/12

Nper (the total number of monthly payments) and

Pv (the mortgage amount)

a. Find the monthly payments if the $260,000 was financed over 15 years.

b. Find the monthly payments if the $260,000 was financed over 30 years.

c. Multiply your answer to part (a) by the number of payments to find how much the

family would need to pay in total over the life of the 15-year loan. Subtract the

principal amount from this to give the amount of interest paid over the life of the loan.

d. Multiply your answer to part (b) by the number of payments to find how much the

family would need to pay in total over the life of the 30-year loan. Subtract the

principal amount from this to give the amount of interest paid over the life of the loan.

Need answers for all the parts ASAP.