3.use the “loan Payment formula” what is your monthly payment? Tax and home owner insurance will not be added to this amount.
In this lab, we will compare 3 different loan options. Suppose that you are buying a house for$205,000. The loan is at a fixed APR of 3.5% for 30 years.Option 1: Making a down payment1. If a 10% down payment is required, calculate this amount:aosoo2. What amount remains to be financed (this will be your loan amount)? _1 84_, 500( Please write this value in the chart below in the first row under "Balance".)3. Use the "Loan Payment Formula" to calculate your monthly payment: 419. 13 or q28. $4( Note that property tax and homeowner’s insurance will usually be added to themonthly payment, but we will look at just the payment on the principal for comparisonpurposes.)4.A table of principal and interest payments over the life of a loan is called anamortization table. Amortization tables can be built by hand but are ideally built with aspreadsheet or using an online tool. Go to Canvas and use the "Amortization TableSpreadsheet for Chapter 4 Lab" to complete the Amortization Table below.To use the spreadsheet, enter the loan amount or "balance" from part (2) as the "LoanAmount". Then enter the number of years and interest rate. The spreadsheet willautomatically fill. You do NOT have to record the entire spreadsheet, just record therows that correspond with the table below. Pay attention to what each column meansas you will analyze this info later in this lab.Payment #MonthlyPrincipalInterest PaidTotalPaymentPaidBalanceInterest0N/AN/AN/AN/A123360