Date Assigned: Monday, June 29, 2020 Date Due: Tuesday, June 30, 2020 before class. No late homework will be accepted. Homework 18 Please notice that all work must be shown in a professional way with attention to detail No credit will be given for incomplete or disorderly work Please use a cover sheet stating your name, course number, date due, and homework number Unstapled homework will not be collected as this is part of the assignment All work must be individual with emphasis on numerical accuracy This is an Excel based assignment that must be submitted following the stated guidelines Please notice that late homework (after collected by the instructor) will incur into a 25% late fee 1. Exercise One: You approve a fixed total annual payment loan for a small business owner - businesses like fixed payments to limit their future liabilities. The loan amount is $5000, the duration of the loan is five years, and the interest rate is 4.25%. (a) Compute the fixed annual payment for this loan and verify your answer by using the PMT function as shown in class, (b) Create an amortization schedule for this company, (c) Using a bar chart, graph the cash flows (i.e. Total Payment, Interest Paid, and Principal Paid) on the y-axis versus time on the x-axis, (d) Add data labels to your series, so that your customer can easily visualize the data. 2. Exercise Two: As part of your plan to become a first time, home owner, you take a mortgage from your local TV Bank branch. The principal loan amount is $1,500,000, the tenure is 30 years, and the interest rate is 7.25%. Assuming a fixed total annual payment model for this mortgage, (a) Compute the fixed annual payment for this loan and verify your answer by using the PMT function as shown in class, (b) Create an amortization schedule for your mortgage, (c) using a bar chart, graph the cash flows (i.e. Total Payment, Interest Paid, and Principal Paid) on the y-axis versus time on the x-axis, (d) add data labels to your series, so that you can easily visualize the data