Please show your calculation as well

17. A few years back, Dave and Jana bought a new home. They borrowed $230,415 at an annual fixed rate of 5.49% (15-year term) with monthly payments of $1,881.46. They just made their 25th payment, and the current balance on the loan is $208,555.87. Interest rates are at an all-time low, and Dave and Jana are thinking of refinancing to a new 15-year fixed loan. Their bank has made the following offer: 15-year term, 1.3.9% plus out-of-pocket costs of $2,937. The out-of-pocket costs must be paid in full at the time of refinancing. Build a spreadsheet model to evaluate this offer. The Excel function =PMT(rate, nper, pv, fv,type) calculates the payment for a loan based on constant payments and a constant interest rate. The arguments of this function are as follows: rate = the interest rate for the loan nper = the total number of payments pv = present value (the amount borrowed) fv = future value [the desired cash balance after the last payment (usually 0)] type = payment type (0 = end of period, 1 = beginning of the period) For example, for Dave and Jana's original loan, there will be 180 payments (12 *15 = 180), so we would use =PMT(0.0549/12, 180, 230415, 0, 0) = $1,881.46. Note that because payments are made monthly, the annual interest rate must be expressed as a monthly rate. Also, for payment calculations, we assume that the pay- ment is made at the end of the month. The savings from refinancing occur over time, and therefore need to be discounted back to current dollars. The formula for converting K dollars saved f months from now to current dollars is K (1 + r)- where r is the monthly inflation rate. Assume that / = 0.5% and that Dave and Jana make their payment at the end of each month. Use your model to calculate the savings in current dollars associated with the refi- nanced loan versus staying with the original loan