Please explain, Excel assignment. Prepare an amortization table for a 30-year mortgage where the homeowner is...

Please explain, Excel assignment.

Prepare an amortization table for a 30-year mortgage where the homeowner is borrowing $170,000 at a 3.75% interest rate. In addition to the monthly table, provide a summary table showing the interest paid, principal paid, and ending balance on a yearly basis. Create three separate graphs illustrating interest paid over time, principal paid over time, and ending balance over time for the 30 annual periods in the summary table.

Repeat the analysis, changing the interest rate to 8.75% and comment (briefly) on the impact of mortgage rates on home affordability.

Solutions

Expert Solution

To find monthly payment, use excel function =PMT

To find principal payment, use excel function = PPMT

Interest = Monthly Payment - Principal Payment

Ending Balance = Previous Balance - Principal Paid

Calculate and plot as below -

When interest rate = 8.75%

jeff jeffy answered 6 days ago

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