Question

In: Finance

Create an amortization schedule in Excel for the following loan: (Hint: Show Calculations) The loan term...

Create an amortization schedule in Excel for the following loan: (Hint: Show Calculations)

The loan term is 15 years, the payments are made monthly, the loan amount is $300,000 and the interest rate is 4.00% APR. Also include the "totals" over the loan term for the "interest" payment, the "principal" payment, as well as "total" payments.

Expert Solution

Sol:

Loan value (PV) = $300,000

Periods (NPER) = 15 years, Monthly = 15 * 12 = 180

Interest rate = 4% APR, Monthly = 4 / 12 = 0.3333%

Amortization schedule

Present value	-300,000
NPER	180
Interest rate	0.3333%
Monthly payment	$2,219.06

Year	Opening balance	Monthly payment	Principal	Interest	Closing balance
1	300,000	$2,219.06	$1,219.06	1000	$298,780.94
2	$298,780.94	$2,219.06	$1,223.13	995.936	$297,557.81
3	$297,557.81	$2,219.06	$1,227.20	991.859	$296,330.60
4	$296,330.60	$2,219.06	$1,231.30	987.769	$295,099.31
5	$295,099.31	$2,219.06	$1,235.40	983.664	$293,863.91
6	$293,863.91	$2,219.06	$1,239.52	979.546	$292,624.39
7	$292,624.39	$2,219.06	$1,243.65	975.415	$291,380.74
8	$291,380.74	$2,219.06	$1,247.79	971.269	$290,132.95
9	$290,132.95	$2,219.06	$1,251.95	967.11	$288,880.99
10	$288,880.99	$2,219.06	$1,256.13	962.937	$287,624.87
11	$287,624.87	$2,219.06	$1,260.31	958.75	$286,364.55
12	$286,364.55	$2,219.06	$1,264.52	954.549	$285,100.04
13	$285,100.04	$2,219.06	$1,268.73	950.333	$283,831.31
14	$283,831.31	$2,219.06	$1,272.96	946.104	$282,558.35
15	$282,558.35	$2,219.06	$1,277.20	941.861	$281,281.15
16	$281,281.15	$2,219.06	$1,281.46	937.604	$279,999.69
17	$279,999.69	$2,219.06	$1,285.73	933.332	$278,713.95
18	$278,713.95	$2,219.06	$1,290.02	929.047	$277,423.94
19	$277,423.94	$2,219.06	$1,294.32	924.746	$276,129.62
20	$276,129.62	$2,219.06	$1,298.63	920.432	$274,830.99
21	$274,830.99	$2,219.06	$1,302.96	916.103	$273,528.03
22	$273,528.03	$2,219.06	$1,307.30	911.76	$272,220.72
23	$272,220.72	$2,219.06	$1,311.66	907.402	$270,909.06
24	$270,909.06	$2,219.06	$1,316.03	903.03	$269,593.03
25	$269,593.03	$2,219.06	$1,320.42	898.643	$268,272.61
26	$268,272.61	$2,219.06	$1,324.82	894.242	$266,947.79
27	$266,947.79	$2,219.06	$1,329.24	889.826	$265,618.55
28	$265,618.55	$2,219.06	$1,333.67	885.395	$264,284.88
29	$264,284.88	$2,219.06	$1,338.11	880.95	$262,946.77
30	$262,946.77	$2,219.06	$1,342.57	876.489	$261,604.19
31	$261,604.19	$2,219.06	$1,347.05	872.014	$260,257.14
32	$260,257.14	$2,219.06	$1,351.54	867.524	$258,905.60
33	$258,905.60	$2,219.06	$1,356.05	863.019	$257,549.56
34	$257,549.56	$2,219.06	$1,360.57	858.499	$256,188.99
35	$256,188.99	$2,219.06	$1,365.10	853.963	$254,823.89
36	$254,823.89	$2,219.06	$1,369.65	849.413	$253,454.24
37	$253,454.24	$2,219.06	$1,374.22	844.847	$252,080.02
38	$252,080.02	$2,219.06	$1,378.80	840.267	$250,701.23
39	$250,701.23	$2,219.06	$1,383.39	835.671	$249,317.83
40	$249,317.83	$2,219.06	$1,388.00	831.059	$247,929.83
41	$247,929.83	$2,219.06	$1,392.63	826.433	$246,537.20
42	$246,537.20	$2,219.06	$1,397.27	821.791	$245,139.93
43	$245,139.93	$2,219.06	$1,401.93	817.133	$243,737.99
44	$243,737.99	$2,219.06	$1,406.60	812.46	$242,331.39
45	$242,331.39	$2,219.06	$1,411.29	807.771	$240,920.10
46	$240,920.10	$2,219.06	$1,416.00	803.067	$239,504.10
47	$239,504.10	$2,219.06	$1,420.72	798.347	$238,083.39
48	$238,083.39	$2,219.06	$1,425.45	793.611	$236,657.93
49	$236,657.93	$2,219.06	$1,430.20	788.86	$235,227.73
50	$235,227.73	$2,219.06	$1,434.97	784.092	$233,792.76
51	$233,792.76	$2,219.06	$1,439.75	779.309	$232,353.00
52	$232,353.00	$2,219.06	$1,444.55	774.51	$230,908.45
53	$230,908.45	$2,219.06	$1,449.37	769.695	$229,459.08
54	$229,459.08	$2,219.06	$1,454.20	764.864	$228,004.88
55	$228,004.88	$2,219.06	$1,459.05	760.016	$226,545.83
56	$226,545.83	$2,219.06	$1,463.91	755.153	$225,081.92
57	$225,081.92	$2,219.06	$1,468.79	750.273	$223,613.13
58	$223,613.13	$2,219.06	$1,473.69	745.377	$222,139.44
59	$222,139.44	$2,219.06	$1,478.60	740.465	$220,660.84
60	$220,660.84	$2,219.06	$1,483.53	735.536	$219,177.32
61	$219,177.32	$2,219.06	$1,488.47	730.591	$217,688.84
62	$217,688.84	$2,219.06	$1,493.43	725.629	$216,195.41
63	$216,195.41	$2,219.06	$1,498.41	720.651	$214,697.00
64	$214,697.00	$2,219.06	$1,503.41	715.657	$213,193.59
65	$213,193.59	$2,219.06	$1,508.42	710.645	$211,685.17
66	$211,685.17	$2,219.06	$1,513.45	705.617	$210,171.73
67	$210,171.73	$2,219.06	$1,518.49	700.572	$208,653.23
68	$208,653.23	$2,219.06	$1,523.55	695.511	$207,129.68
69	$207,129.68	$2,219.06	$1,528.63	690.432	$205,601.05
70	$205,601.05	$2,219.06	$1,533.73	685.337	$204,067.32
71	$204,067.32	$2,219.06	$1,538.84	680.224	$202,528.48
72	$202,528.48	$2,219.06	$1,543.97	675.095	$200,984.51
73	$200,984.51	$2,219.06	$1,549.12	669.948	$199,435.40
74	$199,435.40	$2,219.06	$1,554.28	664.785	$197,881.12
75	$197,881.12	$2,219.06	$1,559.46	659.604	$196,321.66
76	$196,321.66	$2,219.06	$1,564.66	654.406	$194,757.00
77	$194,757.00	$2,219.06	$1,569.87	649.19	$193,187.13
78	$193,187.13	$2,219.06	$1,575.11	643.957	$191,612.02
79	$191,612.02	$2,219.06	$1,580.36	638.707	$190,031.66
80	$190,031.66	$2,219.06	$1,585.62	633.439	$188,446.04
81	$188,446.04	$2,219.06	$1,590.91	628.153	$186,855.13
82	$186,855.13	$2,219.06	$1,596.21	622.85	$185,258.92
83	$185,258.92	$2,219.06	$1,601.53	617.53	$183,657.38
84	$183,657.38	$2,219.06	$1,606.87	612.191	$182,050.51
85	$182,050.51	$2,219.06	$1,612.23	606.835	$180,438.28
86	$180,438.28	$2,219.06	$1,617.60	601.461	$178,820.68
87	$178,820.68	$2,219.06	$1,622.99	596.069	$177,197.68
88	$177,197.68	$2,219.06	$1,628.40	590.659	$175,569.28
89	$175,569.28	$2,219.06	$1,633.83	585.231	$173,935.45
90	$173,935.45	$2,219.06	$1,639.28	579.785	$172,296.17
91	$172,296.17	$2,219.06	$1,644.74	574.321	$170,651.42
92	$170,651.42	$2,219.06	$1,650.23	568.838	$169,001.20
93	$169,001.20	$2,219.06	$1,655.73	563.337	$167,345.47
94	$167,345.47	$2,219.06	$1,661.25	557.818	$165,684.23
95	$165,684.23	$2,219.06	$1,666.78	552.281	$164,017.44
96	$164,017.44	$2,219.06	$1,672.34	546.725	$162,345.10
97	$162,345.10	$2,219.06	$1,677.91	541.15	$160,667.19
98	$160,667.19	$2,219.06	$1,683.51	535.557	$158,983.68
99	$158,983.68	$2,219.06	$1,689.12	529.946	$157,294.57
100	$157,294.57	$2,219.06	$1,694.75	524.315	$155,599.82
101	$155,599.82	$2,219.06	$1,700.40	518.666	$153,899.42
102	$153,899.42	$2,219.06	$1,706.07	512.998	$152,193.35
103	$152,193.35	$2,219.06	$1,711.75	507.311	$150,481.60
104	$150,481.60	$2,219.06	$1,717.46	501.605	$148,764.14
105	$148,764.14	$2,219.06	$1,723.18	495.88	$147,040.96
106	$147,040.96	$2,219.06	$1,728.93	490.137	$145,312.03
107	$145,312.03	$2,219.06	$1,734.69	484.373	$143,577.34
108	$143,577.34	$2,219.06	$1,740.47	478.591	$141,836.87
109	$141,836.87	$2,219.06	$1,746.27	472.79	$140,090.59
110	$140,090.59	$2,219.06	$1,752.10	466.969	$138,338.50
111	$138,338.50	$2,219.06	$1,757.94	461.128	$136,580.56
112	$136,580.56	$2,219.06	$1,763.80	455.269	$134,816.77
113	$134,816.77	$2,219.06	$1,769.67	449.389	$133,047.09
114	$133,047.09	$2,219.06	$1,775.57	443.49	$131,271.52
115	$131,271.52	$2,219.06	$1,781.49	437.572	$129,490.03
116	$129,490.03	$2,219.06	$1,787.43	431.633	$127,702.60
117	$127,702.60	$2,219.06	$1,793.39	425.675	$125,909.21
118	$125,909.21	$2,219.06	$1,799.37	419.697	$124,109.84
119	$124,109.84	$2,219.06	$1,805.36	413.699	$122,304.48
120	$122,304.48	$2,219.06	$1,811.38	407.682	$120,493.10
121	$120,493.10	$2,219.06	$1,817.42	401.644	$118,675.68
122	$118,675.68	$2,219.06	$1,823.48	395.586	$116,852.20
123	$116,852.20	$2,219.06	$1,829.56	389.507	$115,022.64
124	$115,022.64	$2,219.06	$1,835.65	383.409	$113,186.99
125	$113,186.99	$2,219.06	$1,841.77	377.29	$111,345.21
126	$111,345.21	$2,219.06	$1,847.91	371.151	$109,497.30
127	$109,497.30	$2,219.06	$1,854.07	364.991	$107,643.23
128	$107,643.23	$2,219.06	$1,860.25	358.811	$105,782.97
129	$105,782.97	$2,219.06	$1,866.45	352.61	$103,916.52
130	$103,916.52	$2,219.06	$1,872.68	346.388	$102,043.85
131	$102,043.85	$2,219.06	$1,878.92	340.146	$100,164.93
132	$100,164.93	$2,219.06	$1,885.18	333.883	$98,279.75
133	$98,279.75	$2,219.06	$1,891.46	327.599	$96,388.28
134	$96,388.28	$2,219.06	$1,897.77	321.294	$94,490.51
135	$94,490.51	$2,219.06	$1,904.10	314.968	$92,586.42
136	$92,586.42	$2,219.06	$1,910.44	308.621	$90,675.98
137	$90,675.98	$2,219.06	$1,916.81	302.253	$88,759.16
138	$88,759.16	$2,219.06	$1,923.20	295.864	$86,835.96
139	$86,835.96	$2,219.06	$1,929.61	289.453	$84,906.35
140	$84,906.35	$2,219.06	$1,936.04	283.021	$82,970.31
141	$82,970.31	$2,219.06	$1,942.50	276.568	$81,027.82
142	$81,027.82	$2,219.06	$1,948.97	270.093	$79,078.84
143	$79,078.84	$2,219.06	$1,955.47	263.596	$77,123.38
144	$77,123.38	$2,219.06	$1,961.99	257.078	$75,161.39
145	$75,161.39	$2,219.06	$1,968.53	250.538	$73,192.87
146	$73,192.87	$2,219.06	$1,975.09	243.976	$71,217.78
147	$71,217.78	$2,219.06	$1,981.67	237.393	$69,236.11
148	$69,236.11	$2,219.06	$1,988.28	230.787	$67,247.83
149	$67,247.83	$2,219.06	$1,994.90	224.159	$65,252.93
150	$65,252.93	$2,219.06	$2,001.55	217.51	$63,251.37
151	$63,251.37	$2,219.06	$2,008.23	210.838	$61,243.15
152	$61,243.15	$2,219.06	$2,014.92	204.144	$59,228.23
153	$59,228.23	$2,219.06	$2,021.64	197.427	$57,206.59
154	$57,206.59	$2,219.06	$2,028.38	190.689	$55,178.21
155	$55,178.21	$2,219.06	$2,035.14	183.927	$53,143.08
156	$53,143.08	$2,219.06	$2,041.92	177.144	$51,101.16
157	$51,101.16	$2,219.06	$2,048.73	170.337	$49,052.43
158	$49,052.43	$2,219.06	$2,055.56	163.508	$46,996.87
159	$46,996.87	$2,219.06	$2,062.41	156.656	$44,934.47
160	$44,934.47	$2,219.06	$2,069.28	149.782	$42,865.19
161	$42,865.19	$2,219.06	$2,076.18	142.884	$40,789.01
162	$40,789.01	$2,219.06	$2,083.10	135.963	$38,705.91
163	$38,705.91	$2,219.06	$2,090.04	129.02	$36,615.86
164	$36,615.86	$2,219.06	$2,097.01	122.053	$34,518.85
165	$34,518.85	$2,219.06	$2,104.00	115.063	$32,414.85
166	$32,414.85	$2,219.06	$2,111.01	108.049	$30,303.83
167	$30,303.83	$2,219.06	$2,118.05	101.013	$28,185.78
168	$28,185.78	$2,219.06	$2,125.11	93.9526	$26,060.67
169	$26,060.67	$2,219.06	$2,132.19	86.8689	$23,928.48
170	$23,928.48	$2,219.06	$2,139.30	79.7616	$21,789.18
171	$21,789.18	$2,219.06	$2,146.43	72.6306	$19,642.74
172	$19,642.74	$2,219.06	$2,153.59	65.4758	$17,489.15
173	$17,489.15	$2,219.06	$2,160.77	58.2972	$15,328.39
174	$15,328.39	$2,219.06	$2,167.97	51.0946	$13,160.42
175	$13,160.42	$2,219.06	$2,175.20	43.8681	$10,985.22
176	$10,985.22	$2,219.06	$2,182.45	36.6174	$8,802.78
177	$8,802.78	$2,219.06	$2,189.72	29.3426	$6,613.06
178	$6,613.06	$2,219.06	$2,197.02	22.0435	$4,416.04
179	$4,416.04	$2,219.06	$2,204.34	14.7201	$2,211.69
180	$2,211.69	$2,219.06	$2,211.69	7.3723	0.00
			$300,000.00	$99431.48	$399,431.48

Principal amount = $300,000

Interest payment = $99,431.48

Total payments = $399,431.48

Working

jeff jeffy answered 1 year ago

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