Extraordinary Families, a foster family agency, needs to borrow $$250,000$ in the form of a mortgage to update family meeting and overnight space to comply with state law. It agrees to repay this mortgage in monthly payments over $10$ years, making a single payment of principal and interest at the end of each month. It agrees to a $4$ percent annual interest rate on the loan.

$($A$)$ Use the PMT function in Excel to determine what the monthly payment will be$.$ Please remember that you need to divide the $4$ percent interest rate by $12$ to reflect monthly rather than annual payments, and multiply the period $(10)$ by $12$ as well.

$($B$)$ One of the board members thinks that the organization should limit its mortgage payment to $$1500$ per month, and fund$-$raise to pay whatever $$balloon$$ payment would be required at the end of the payment period. They want to know what the amount of the remaining liability would be$.$

Use the FV function in excel to determine how much liability would be left at the end with the same terms listed above, and a $$1,500$ monthly payment. Hint: be sure to enter $$1,500$ as a negative in the formula.