Excel assignment Prepare an amortization table for a 30-year mortgage where the homeowner is borrowing $170,000...

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

Due to space restrictions, posting the first 10 and last 10 payments

Loan Amount	Interest Rate	Term in Years	Monthly Payment
$170,000.00	3.75%	30	$787.30

Month	StartingBalance	Interest	Principal	EndingBalance	TotalInterest
1	$170,000.00	$531.25	$256.05	$169,743.95	$531.25
2	$169,743.95	$530.45	$256.85	$169,487.11	$1,061.70
3	$169,487.11	$529.65	$257.65	$169,229.46	$1,591.35
4	$169,229.46	$528.84	$258.45	$168,971.00	$2,120.19
5	$168,971.00	$528.03	$259.26	$168,711.74	$2,648.22
6	$168,711.74	$527.22	$260.07	$168,451.67	$3,175.45
7	$168,451.67	$526.41	$260.89	$168,190.78	$3,701.86
8	$168,190.78	$525.60	$261.70	$167,929.08	$4,227.46
9	$167,929.08	$524.78	$262.52	$167,666.57	$4,752.23
10	$167,666.57	$523.96	$263.34	$167,403.23	$5,276.19

351	$7,739.32	$24.19	$763.11	$6,976.21	$113,317.29
352	$6,976.21	$21.80	$765.50	$6,210.72	$113,339.09
353	$6,210.72	$19.41	$767.89	$5,442.83	$113,358.49
354	$5,442.83	$17.01	$770.29	$4,672.54	$113,375.50
355	$4,672.54	$14.60	$772.69	$3,899.85	$113,390.10
356	$3,899.85	$12.19	$775.11	$3,124.74	$113,402.29
357	$3,124.74	$9.76	$777.53	$2,347.20	$113,412.06
358	$2,347.20	$7.34	$779.96	$1,567.24	$113,419.39
359	$1,567.24	$4.90	$782.40	$784.84	$113,424.29
360	$784.84	$2.45	$784.84	$0.00	$113,426.74

WORKINGS

PART 2

Loan Amount	Interest Rate	Term in Years	Monthly Payment
$170,000.00	8.75%	30	$1,337.39

Month	StartingBalance	Interest	Principal	EndingBalance	TotalInterest
1	$170,000.00	$1,239.58	$97.81	$169,902.19	$1,239.58
2	$169,902.19	$1,238.87	$98.52	$169,803.67	$2,478.45
3	$169,803.67	$1,238.15	$99.24	$169,704.43	$3,716.61
4	$169,704.43	$1,237.43	$99.96	$169,604.47	$4,954.03
5	$169,604.47	$1,236.70	$100.69	$169,503.78	$6,190.73
6	$169,503.78	$1,235.97	$101.43	$169,402.35	$7,426.70
7	$169,402.35	$1,235.23	$102.17	$169,300.19	$8,661.92
8	$169,300.19	$1,234.48	$102.91	$169,197.28	$9,896.40
9	$169,197.28	$1,233.73	$103.66	$169,093.62	$11,130.13
10	$169,093.62	$1,232.97	$104.42	$168,989.20	$12,363.11

351	$12,852.84	$93.72	$1,243.67	$11,609.17	$311,033.30
352	$11,609.17	$84.65	$1,252.74	$10,356.43	$311,117.95
353	$10,356.43	$75.52	$1,261.88	$9,094.55	$311,193.46
354	$9,094.55	$66.31	$1,271.08	$7,823.47	$311,259.78
355	$7,823.47	$57.05	$1,280.34	$6,543.13	$311,316.82
356	$6,543.13	$47.71	$1,289.68	$5,253.45	$311,364.53
357	$5,253.45	$38.31	$1,299.08	$3,954.36	$311,402.84
358	$3,954.36	$28.83	$1,308.56	$2,645.81	$311,431.67
359	$2,645.81	$19.29	$1,318.10	$1,327.71	$311,450.97
360	$1,327.71	$9.68	$1,327.71	$0.00	$311,460.65

Interest payments are much higher resulting in higher payments.

jeff jeffy answered 2 days ago

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