Mortgage loan (LO3). Diana and Jason just bought a house for a price of $484,000, inclusive of title insurance and closing costs. They plan to make a down payment of $84,000. They were able to secure...

Mortgage loan (LO3). Diana and Jason just bought a house for a price of $484,000, inclusive of title insurance and closing costs. They plan to make a down payment of $84,000. They were able to secure a 30-year fixed mortgage loan at an annual percentage rate of 6%, compounded monthly from a mortgage lending company.

Required:

a. Using the PMT function in Excel, calculate the monthly payment that Diana and Jason have to make to the mortgage lending company. Because interest is compounded monthly, remember to convert the annual rate into a monthly rate, and convert the number of periods in the mortgage loan from years to months.

b. What would be the outstanding loan balance at the end of five years? (Hint: Use the annuity as calculated in part (a) above, and consider only the remaining monthly installment payments)