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Emma Jones is planning to move this coming summer to Oxford, MSto start her new job at a technology firm. She has not yet decidedwhether she wants to rent or buy a property here in Oxford and sheis asking your team to help her make this financial decision. Hermonthly budget is $1,500 to cover any housing expenses includingrent or owners’ costs (example: mortgage, hazard insurance,property taxes, and Home Owner Association fees). A good start ofthe analysis is by applying financial concepts such as the “timevalue of money.”Emma’s contract is for three years and is renewable for threemore. Her plan is to stay in the Oxford area for no more than 8years. Even if her job continues to work out well, she will try tomove from the location she selects to a bigger house.Although at times a person might have reasons other thanfinancial ones for renting rather than buying, Emma is convincedthat she will make this decision purely based on financial motives.She is not worried about arguments such as “you are throwing awayyour money when renting” or “it is better to be flexible and rentrather than buy”.Total points for the case: 100 pointsQuestions:Please Include Excel FormulasEstimate the maximum house value she can afford to buy. Assumethe mortgage is fixed rate, 30 years maturity, 80% LTV, with nopoints. The interest rate that she was quoted is 4.8% with monthlypayments. The property tax rate in the city of Oxford is 0.7% peryear of the property value; the hazard insurance premium is 0.5%per year, and that on average you should consider $50 per month formaintenance. Determine the required monthly payment for themortgage and the maximum house value she can afford if she buys (15points). With this maximum house value select one that Emma canafford and follow the instruction for the case.