Instructions: 1. Your uncle has saved money for years and is thinking of buying his first home in Massachusetts. The house he's thinking about buying will cost S500,000 (including the house itself, closing costs, etc.). He's working with a local community bank to receive the financing he needs to complete the purchase. The bank wants your uncle to pay them a down payment of 20% of the house's cost. Calculate this amount. 2. Assuming your uncle has the funds saved for the down payment, how much will he have to loan from the bank to buy the house? Calculate the principal (loan) amount. This should be in your inputs section of your schedule. The bank offers your uncle a fifteen-year 7.2% APR loan with equal monthly payments and monthly compounding. Part 1 3. How many periods will the loan have? Add this to your . What will the periodic interest rate be? Add this to your 5. Calculate the effective annual rate. You can do this in inputs section. inputs section. Excel using the EFFECT function or with a calculator and answer it in your Word document (either way is inc 6. How much higher is the effective interest rate than the APR? 7. How much is your monthly payment? You should do this in Excel with either: a) the PMT function or b) by having Excel manually calculate the payment. You can use a financial calculator to confirm your answer; however, the payment must be the output of a formula and cannot be simply typed as a raw value into an Excel cell. 8. Prepare an amortization schedule for the loan. The schedule should link the beginning balance in the first period to your beginning balance in your inputs section Use the following column headings: Link this to the loan's balance in your input cell should link to the balanee in year