Q2 & Q3: APR and EBC Calculations 1. Use Excel formulas to calculate and compare the two loan's APRs in Question 2. Assume you hold the loan until maturity. Remember that APR considers interest rate, loan fees ("points"), and applicable closing costs. For the sake of simplicity there loan fees, but no closing costs in this assignment a. Calculate the APR for both loans b. Which loan would you choose and why? (One or two sentences is sufficient) 2. Fill out the blank blue cells to compare the two loan's Effective Borrowing Costs (EBC) in Question 3. Assume you will not hold the loans until maturity. If necessary, feel free to perform additional calculations off to the side in Excel. a. Calculate the EBC for both loans b. Which loan would you choose and why? (One or two sentences is sufficient) Question 2: Hold until maturity Question 3: Hold for 9 years Months Loan amount Rate Points Payment Loan A Loan B 360 360 $531,250 $531,250 4.00% 3.75% 0.00% 2.50% ($2,536.27). ($2,460.30) 0.33% Months Loan amount Rate Points Payment EBC Loan A 360 $531,250 4.00% 0.00% ($2,536.27) Loan B 360 $531,250 3.75% 2.50% ($2,460.30) APR ment ----> Enter comment here Enter comment here