1. If a cell in an Excel spreadsheet uses the following formula to determine the monthly payment for a loan:

=PMT(0.046/12, 12*20,-365000)

What is the amount being borrowed for this loan?

What is the Annual Percentage Rate for the loan?

2. Thomas is considering purchasing a new home. His banker has presented a 10-year mortgage at a fixed rate of 4.9%. The cost of the home is $242000 and Thomas will be required to provide a 25% down payment. If we use Excel to determine his monthly payment, which of the following Excel commands could be used to determine his payment? (Choose all that apply. There can be more than one way to enter the values in Excel to get the desired outcome.) A. =PMT(4.9,10,-242000) B. =PMT(0.049/12,10*12,-$181500) C. =PMT(0.049/12,120,-242000+60500) D. =PMT(4.9%/12,12*10,-181500) E. =PMT(4.9/12,12*10,-181500) F. =PMT(0.049/12,120,-181500)

3. Pierre and Marcus are buying a house. They have $30000 for a down payment. The house price is $167000. If the interest rate is 8.95% compounded monthly, use Excel to determine the size of the monthly payments they must make over the next 25 years to pay off the house. Express your answer rounded to the nearest cent!

4. If a cell in an Excel spreadsheet uses the following formula to determine the present value of an loan:

=PV(0.0625/12, 12*30,-230)

For how many years will monthly payments be made?

How much money in total will the borrower pay for the loan?

5. Carlos has decided to move out of his apartment and purchase a home. After careful consideration, he has determined that he could afford a monthly mortgage payment of $900. His bank is currently offering a 20-year mortgage at a fixed rate of 6.6%. If we assume that Carlos can make the necessary down payment from his savings and his credit rating is excellent, which of the following Excel commands could be used to determine how much money Carlos would be allowed to borrow? (Choose all that apply!) A. =PV(0.066/12,240,-900) B. =PV(6.6/12,12*20,-900) C. =PV(6.6,20,-$900) D. =PV(6.6%/12,12*20,-900) E. =PV(0.066/12,20*12,-$900)

6. Liz and Marcelle are buying a house. They have $24000 for a down payment. The house price is $160000. They have secured a 30 year loan with an annual interest rate of 5.35% compounded monthly, Use Excel to determine the size of the monthly payments they must make over the next 30 years to pay off the house. How much will they pay total over the 30 years? How much will they pay in interest of the 30 years? Express your answer rounded to the nearest cent! Payments: $ Total paid: $ Total interest: $ (11)