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In: Finance

Suppose that the house of your dreams costs $1,200,000. You manage to scrap a 20 percent...

Suppose that the house of your dreams costs $1,200,000. You manage to scrap a 20 percent down payment. You borrow the rest from a bank. The terms of the loan are:

-30 years

-4.5 percent

-Monthly payments

A) Find the amount of each monthly payment.

B) Suppose you decide to sell the house after 12 years:

-What is the loan balance at the end of 12 years?

-What is the amount of your total payments over the 12 years?

-What is the amount of your total principal payments over the 12 years?

-What is the amount of your total interest payments over the 12 years?

C) Use Excel to set up an amortization table.

Solutions

Expert Solution

jeff jeffy answered 2 years ago
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