In: Finance
I and my husband Jose have total amount of $150,000 in our savings account. We have 3 school going kids. We want to buy a new home, a new car and keep funds for children higher education.
We finalized to buy a home for $760,000. We may use $120,000 of our savings as a down payment on it. For balance financing the mortgage specialist/agent gave us the following options:
Ques 1. What will the semi-monthly payment be on the Option 1 mortgage?
Please use (display + name) the excel function/ formula. Also please attach the screenshots/ photos of the excel sheet solution.
Option 2: a monthly payment of $2,900 to be made at the end of each period. The interest rate with this option would be 3.60% APR (annual percentage rate) compounded semi-annually.
Ques 2. How many years will Option 2 mortgage be amortized over?
Please use (display + name) the excel function/ formula. Also please attach the screenshots/ photos of the excel sheet solution.
Ques 3. To buy a new car of $45,000 (including taxes). In exchange of our old car for $10,000 and $10,000 from our savings as a down payment, the car dealer would provide the $25,000 balance as a 5-year loan paid semi-monthly at 4.8% APR compounded semi-monthly. What will the payment be on the loan for the car as per below information?
Please use (display + name) the excel function/ formula. Also please attach the screenshots/ photos of the excel sheet solution.
Question 1
The semi monthly payment is an annuity and can be found using the PMT function in Excel.
Question 2
The number of periods can be found using the NPER function in
excel. As the payment is monthly we would get the number of periods
in months and to get the number of years we have to divide by
12.
Question 3