1. Hugh is in his final year of study and forecast that it will cost $1,400,000...

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1. Hugh is in his final year of study and forecast that it will cost $1,400,000 to cover tuition and boarding. He plans to finance 85% of the required amount with a 4-year loan from his local commercial bank. The loan is at a 16.5% annual rate and compounds monthly. a) Using Excel, compute the monthly payment required to clear the loan within the projected period. b) Using Excel, prepare the amortization spreadsheet (show formulas). c) How much interest would Hugh have paid at the end of two and half years? d) What proportion of the 25th payment is interest? e) What is the effective rate being charged by the commercial bank? 1. Hugh is in his final year of study and forecast that it will cost $1,400,000 to cover tuition and boarding. He plans to finance 85% of the required amount with a 4-year loan from his local commercial bank. The loan is at a 16.5% annual rate and compounds monthly. a) Using Excel, compute the monthly payment required to clear the loan within the projected period. b) Using Excel, prepare the amortization spreadsheet (show formulas). c) How much interest would Hugh have paid at the end of two and half years? d) What proportion of the 25th payment is interest? e) What is the effective rate being charged by the commercial bank?