Question

You have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800,000. The mortgage is currently exactly 18½ years old, and you have just made a payment. If the interest rate on the mortgage is 5.25% (APR), how much cash will you have from the sale once you pay off the mortgage?

Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section.

	Sale price	$      1,000,000
	Initial balance	$         800,000
	Number of years	30
	Periods per year	12
	Periods into the loan	222
	APR	5.25%
	Discount rate
	Monthly payment
	Periods remaining
	PV of mortgage
	Cash from sale

Requirements
	1	In cell D13, by using cell references, calculate the discount rate (1 pt.).
	2	In cell D14, by using cell references, calculate the monthly payment (1 pt.). Note: (1) The output of the expression or function you typed in this cell is expected as a positive number. (2) For the nper parameter, use cells D8 and D9.
	3	In cell D15, by using cell references, calculate the number of periods remaining on the loan (1 pt.).
	4	In cell D16, by using cell references, calculate the amount that you owe on the mortgage (1 pt.). Note: The output of the expression or function you typed in this cell is expected as a positive number.
	5	In cell D17, by using cell references, calculate the amount that you will have from the sale of your home after paying off the mortgage (1 pt.).

Answer 1