[SHORT] In Excel: Amount of the loan: $500,000 Length of the loan: 30 years Payment: Equal...

[SHORT] In Excel:

Amount of the loan: $500,000
Length of the loan: 30 years
Payment: Equal annual payment
Interest rate: Annual interest rate is 3.0% in year 1, and increases at 0.1% increment every year after that. So Year 2's rate will be 3.1%, Year 3's rate will be 3.2%, etc.

Create a year-by-year table with Year, Beginning balance, PMT, interest, principal, and ending balance.

Make sure to create a column to reflect floating interest rates.

Make sure to utilize goal seek to calculate loan annual payment.

Expert Solution

By using GOALSEEK method.

jeff jeffy answered 2 weeks ago

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