In: Finance
Show work through excel formulas: please actually show how you do it on excel exactly!
1. Suppose you have taken out a $125,000 fully-amortizing fixed rate mortgage loan that has a term of 15 years and an interest rate of 6%. After your first mortgage payment, how much of the original loan balance is remaining?
A. $1,054.82 B. $120,603.78 C. $124,570.18 D. $124,875.56
2. Assume you have taken out a partially amortizing loan for $325,000 that has a term of 7 years, but amortizes over 30 years. Calculate the balloon payment at maturity (Year 7) if the interest rate on this loan is 4.5%.
A. $1,646.73 B. $118,468.21 C. $282,835.42 D. $324,572.02
1.
Loan amount | $ 125,000.00 |
Term in years | 15 |
Total number of payments | 180 |
Annual Interest rate | 6% |
Monthly Interest rate | 0.50% |
Monthly payment | $1,054.82 |
Principal paid in the first payment | $ 429.82 |
Loan Balance | $ 124,570.18 |
Excel formulas:
2.
Loan amount | $ 325,000.00 |
Amortizing term in years | 30 |
Amortizing term in month | 360 |
Annual interest rate | 4.50% |
Monthly interest rate | 0.375% |
Monthly payment | $1,646.73 |
Number of payment upto 7 years | 84 |
Principal paid upto 7 years | $ 42,164.58 |
Balloon payment | $ 282,835.42 |
Excel formulas: