a.-Build a mortgage payment schedule with the following assumptions. Assume that you are obtaining a $150k loan, 15 yr fixed interest rate is 3.194%, 30 yr fixed interest rate is 3.788%. Compare the two loans in terms of overall interest paid and define what the principle balance is after 12 years for each type of loan: the 15 yr and the 30 yr. Do not hard code the input variables into the spreadsheet.
b. Use Excel to Graph the Total Interest Paid and the Principle Remaining (on same graph) as a function of time (the independent variable) for both loans.
c. Which loan would you select and why?