Question

You are considering the purchase of a new home offered at a price of $225,000. Create an amortization table in a new workbook that shows how much interest and principal you will pay each month for the duration of the loan. The following is a list of assumptions and requirements you need to consider for this assignment: You will be making a down payment of 20% on the home. The bank will offer you a loan at an annual interest rate of 5.5% for 30 years. Your mortgage payments will be made at the end of each month. You must construct the amortization table so that any change in the loan variables, down payment percent, length of loan, interest rate, and so on will automatically produce new outputs for each month of the amortization table. The amortization table must show the interest payment, principal payment, and balance remaining to be paid on the loan for every month of the loan duration. The beginning balance for the last month of the loan should be equal to the principal payment in the last month.

Answer 1

In the given case Home Loan is taken by us Cost of Home is $225000 & loan Amount is $180000
We can answer this question in 2 STEPS
STEP -1
First step is to calculate installment amount which is :
New Home Cost	225000
Down payment	45000
Loan Amount	180000
Annual interest rate	5.50%
Years	30
Installment Amount	12,384.97
STEP -2
As you have mentioned number of years=30,so amortization table shown is in the years
YEAR	Opening Balance	Installment Amount	Interest Amount	Principal amount	Closing Balance
1	1,80,000.00	12,384.97	9,900.00	2,484.97	1,77,515.03
2	1,77,515.03	12,384.97	9,763.33	2,621.64	1,74,893.39
3	1,74,893.39	12,384.97	9,619.14	2,765.83	1,72,127.55
4	1,72,127.55	12,384.97	9,467.02	2,917.95	1,69,209.60
5	1,69,209.60	12,384.97	9,306.53	3,078.44	1,66,131.16
6	1,66,131.16	12,384.97	9,137.21	3,247.76	1,62,883.40
7	1,62,883.40	12,384.97	8,958.59	3,426.38	1,59,457.02
8	1,59,457.02	12,384.97	8,770.14	3,614.83	1,55,842.18
9	1,55,842.18	12,384.97	8,571.32	3,813.65	1,52,028.53
10	1,52,028.53	12,384.97	8,361.57	4,023.40	1,48,005.13
11	1,48,005.13	12,384.97	8,140.28	4,244.69	1,43,760.44
12	1,43,760.44	12,384.97	7,906.82	4,478.15	1,39,282.30
13	1,39,282.30	12,384.97	7,660.53	4,724.44	1,34,557.86
14	1,34,557.86	12,384.97	7,400.68	4,984.29	1,29,573.57
15	1,29,573.57	12,384.97	7,126.55	5,258.42	1,24,315.14
16	1,24,315.14	12,384.97	6,837.33	5,547.64	1,18,767.51
17	1,18,767.51	12,384.97	6,532.21	5,852.76	1,12,914.75
18	1,12,914.75	12,384.97	6,210.31	6,174.66	1,06,740.09
19	1,06,740.09	12,384.97	5,870.70	6,514.27	1,00,225.83
20	1,00,225.83	12,384.97	5,512.42	6,872.55	93,353.28
21	93,353.28	12,384.97	5,134.43	7,250.54	86,102.74
22	86,102.74	12,384.97	4,735.65	7,649.32	78,453.42
23	78,453.42	12,384.97	4,314.94	8,070.03	70,383.38
24	70,383.38	12,384.97	3,871.09	8,513.88	61,869.50
25	61,869.50	12,384.97	3,402.82	8,982.15	52,887.35
26	52,887.35	12,384.97	2,908.80	9,476.17	43,411.19
27	43,411.19	12,384.97	2,387.62	9,997.35	33,413.83
28	33,413.83	12,384.97	1,837.76	10,547.21	22,866.62
29	22,866.62	12,384.97	1,257.66	11,127.31	11,739.32
30	11,739.32	12,384.97	645.66	11,739.31	0.01