Problem $3$: Kaplan Design Services, Inc. $($KDS$)$ has launched a new branding and marketing campaign

aimed at doubling annual revenues in the next five years. The firm expects its current space to be

sufficient to handle clients$$ needs for the next $24$ months. As a result, KDS plans to expand its current

space. KDS$$ management believes that by creating a new state$-$of$-$the art space, it can build a broader

customer base, spur creativity among its in$-$house designers, foster stronger team$-$based collaboration,

and provide a hands$-$on experiential learning environment expected from world$-$class design firms. The

projected cost for the expansion is $$475,000.$ KDS believes it can secure a loan to fund the new studio.

The loan will be paid back in monthly installments over five years, with an APR of $5\%,$ compounded

monthly.

a$.$ How much will KDS pay monthly for the loan if it finances the entire cost of the project?

b$.$ Create an amortization schedule for this loan

Note: The choice of whether to display the amount paid in interest, principal as a positive or negative

cash flow is arbitrary. You may use either convention, as long as your output is internally consistent.

c$.$ Calculate the total amount paid in interest and principal each year using the CUMIPMT and

CUMPRINC functions