Short Case Study ST$4\mathrm{.}5$ on page $202$ of your textbook about buying a home worth of $$110,000$ with a downpayment of $$50,000,$ etc. $(75$ pts out $200$ total available points$)$

Suppose you are going to buy a home worth $$110,000$ and you make a down payment in the amount of $$50,000.$ The balance will be borrowed from the Capital Savings and Loan Bank. The loan officer offers the following two financing plans for the property.

Option $1.$A conventional fixed$-$rate loan at an interest rate of $13\%$ over $30$ years with $360$ equal monthly payments.

Option $2.$A graduated payment schedule at $11\mathrm{.}5\%$ interest with the monthly payment schedule given in Table ST$4\mathrm{.}5.$ If you go with this graduated payment loan, mortgage insurance is a must in addition to the monthly payments.

What is the effective annual interest rate you are paying under option $2?$

Compute the outstanding balance at the end of five years under each option.

Compute the total interest payment under each option.

Assuming that your only investment alternative is a savings account that earns an interest rate of $6\%$ compounded monthly, which option is a better deal?

Please ensure you are not using your textbook's international and$/$or wrong version. You will lose a huge amount of valuable points if you use the wrong numbers.$$

Please submit a single Excel file with three tabs in it $($one tab for each case study.$)$

Please show all your work clearly $($factor notations, working $($not screenshots$),$ Excel, and$/$or mathematical formulas.

The more organized your work is$,$ the more chances to get a higher score. ST$4\mathrm{.}5$ Suppose you are going to buy a home worth $\backslash (\backslash$$ $110,000\backslash )$ and you make a down payment in the amount of $\backslash (\backslash$$ $50,000\backslash ).$ The balance will be borrowed from the Capital Savings and Loan Bank. The loan officer offers the following two financing plans for the property.

$-$ Option $1.$ A conventional fixed$-$rate loan at an interest rate of $\backslash (13\backslash \%\backslash )$ over $30$ years with $360$ equal monthly payments.

$-$ Option $2.$ A graduated payment schedule at $\backslash (11\mathrm{.}5\backslash \%\backslash )$ interest with the monthly payment schedule given in Table ST$4\mathrm{.}5.$ If you go with this graduated payment loan, mortgage insurance is a must in addition to the monthly payments. Table ST$4\mathrm{.}5$

a$.$ What is the effective annual interest rate you are paying under option $2?$

b$.$ Compute the outstanding balance at the end of five years under each option.

c$.$ Compute the total interest payment under each option.

d$.$ Assuming that your only investment alternative is a savings account that earns an interest rate of $\backslash (6\backslash \%\backslash )$ compounded monthly, which option is a better deal? $3.$ Short Case Study ST$4\mathrm{.}5$ on page $202$ of your textbook about buying a home worth of $\backslash (\backslash$$ $110,000\backslash )$ with a downpayment of $\backslash (\backslash$$ $50,000\backslash ),$ etc. $(75$ pts out $200$ total available points$)$

Please ensure you are not using your textbook's international and$/$or wrong version. You will lose a huge amount of valuable points if you use the wrong numbers.

Please submit a single Excel file with three tabs in it $($one tab for each case study.$)$

Please show all your work clearly $($factor notations, working $($not screenshots$),$ Excel, and$/$or mathematical formulas.

The more organized your work is$,$ the more chances to get a higher score.