FINANCE ASSIGNMENT **THIS ASSIGNMENT REQUIRES THE USE OFMICROSOFT EXCEL** Refer to information page on the use of somefinance features in Excel. Understand financial functions @PMT,@PPMT, @IPMT, @PV and @FV. See here. 1. Assume you are employed at$60,000 per year. Consider such deductions as social security,income taxes (federal, state and county) and your payment on healthbenefits. Do the best you can to come to grips with what is arealistic monthly take home pay. 2. Develop a projection of monthlyexpenses; food, clothing, housing, auto payment, auto insurance,gasoline, utilities, etc. (refer to the list of possible expensesoutlined in the Money Management PowerPoint presentation). UseExcel to organize your list of projections. 3. Use Excel todetermine the above monthly auto payment and possible housingpayment. Let’s try a scenario that will help you to figure out whatpayment is best for you. A. First find the monthly payment on a$10,000 automobile. Assume 6.5% over 36 months with no money down.B. Similarly, determine the same for a $30,000 automobile. C.Assume, as an alternative, you decide to wait for a year, and thatyou place whatever monthly payment you would be paying on eithercar into an interest bearing savings account, or small certificatesof deposit paying 2.0% per month. Use the @FV function to determinethis value. D. Now, patting yourself on the back for yourself-restraint over the year, you take this amount and use it as adown payment to buy either car (except it is a year later). Assumethe same terms: 36 months with 6.5% interest. Again, calculate thenew monthly payment and compare with A and B. How much extra"luxury income" do you have per month as a benefit of yourselfrestraint. E. Surrounding Morgan State University, $750/monthbuys an adequate apartment. I assume, even with this $750, youcould still swing the $30,000 automobile in B. However, if you gofor option A and take the savings between B and A, you have thatmuch more (than the $750 you would have to pay for an apartment)that you could use to purchase a modest home. Use Excel todetermine how much house you could buy with $750 + (Payment in B-Payment in A). Assume 6.0% over 360 months. F. Assume a loan of$30,000, 36 months, 6.5% interest. Generate a table of paymentsshowing the principal payment and the interest payment for each ofthe 36 months. 4. After all monthly expenses are accounted for,place 5% of the balance in your savings account. How much moneywill you have left from your take home pay? 5. Be sure to list yourprojected monthly expenses clearly on your Excel spreadsheet.Include your chosen monthly automobile and housing paymentcalculated in the above steps as well as your savings amount. Youmust clearly highlight your choice of car (purchased with/without adown payment) and a modest home or apartment. References = pv(rate,nper, pmt) Please see PV Function Help = pmt(rate, nper, pv) Pleasesee PMT Function Help = ppmt(rate, per, nper, pv) Please see PPMTFunction Help = ipmt(rate, per, nper, pv) Please see IPMT FunctionHelp =fv(rate, nper, pmt, [pv]) Please see FV Function Help