question & answer is provided. please show this answer/calculations in excel. thank you!

You are thinking of purchasing a house that costs $175,000. You have $12,000 in cash that you can use as a down payment, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires monthly payments and has an annual interest rate of 6.65% per year. What will your monthly payments be if you sign up for this mortgage? Draw the amortization schedule on a monthly basis using Excel. Calculate the total amount of interest paid throughout the life of the loan. Create a graph depicting the changes in the portions of interest and principal for each monthly payment throughout the life of the loan. Suppose the interest rate decreases to 5.25% per year and the length of repayment decreases to 15 years. What will the new monthly payment be? Draw a new amortization schedule in a separate Excel sheet. Calculate the total amount of interest paid throughout the life of the loan. How much do you save if you go with the 15-year mortgage versus the 30-year mortgage example above? To calculate the monthly payments for a 30-year mortgage with an annual interest rate of 6.65% on a $175,000 loan with a $12,000 down payment, you can use the following formula: M=P(1+i)n1i(1+i)n Where: M= monthly payment P= loan amount (i.e. purchase price of the house minus the down payment) i= monthly interest rate (i.e. annual interest rate divided by 12) n= number of payments (i.e. 30 years 12 months per year) Plugging in the values, the formula becomes: M=($175,000$12,000)(1+121206.65)30xx1211006.65(1+121006.65)3012 The monthly payment will be $1,066.16 Explanation To draw the amortization schedule on a monthly basis using Excel, you can create a spreadsheet with columns for the payment number, the amount of the payment that goes towards interest, the amount of the payment that goes towards the principal, and the remaining balance. The schedule will now show that the portion of the payment going towards interest will decrease and the portion going towards the principal will increase as the loan is paid off. The total amount of interest paid throughout the life of the loan is $239,988,.33 If the interest rate decreases to 5.25% per year and the length of repayment decreases to 15 years, the new monthly payment will be $1,360.40. The total amount of interest paid the output the life of the loan will be $71,094.40