Work on the Excel file to answer the following questions:

a. What is the effect of a change in the interest rate from 8 percent to 10 percent in the Worksheet Figure 1?

b. For the original model in Figure 1, what interest rate is required to decrease the monthly payments by 20 percent? What change in the loan amount would have the same effect?

C. In the Worksheet Figure 2, what is the effect of a prepayment of $200 per month? What prepayment would be necessary to pay off the loan in 25 years instead of 30 years?

Answer questions a, b, and c at the Answer worksheet in a clearly labeling sequence. Be sure to explain where and how you get your answers. In specific, you answer should be from your work at the Figure 1 & 2 based upon the initial data.

Thanks.I have provided all the information I have in regards the question, and the answer should be in excel worksheet and to indicate which cell is the result at your answer.

SHOW WORK

3 6 7 10 11 12 13 14 15 16 17 18 19 Simple Loan Calculation Model in Excel $150,000 Loan Amount 8.00% Interest Rate 30 Number of Years Number of Months 360 Interest Rate/Month 0.67% $1,100.65 Monthly Loan Payment Excel Spreadsheet Static Model Example of a Simple Loan