Question

In: Accounting

**Please, Show work and Formula in excel sheet** Your initial loan amount is $200,000. The APR...

**Please, Show work and Formula in excel sheet**

Your initial loan amount is $200,000. The APR is 5%. The number of years of the loan is 20 years. Generate the amortization table for the given loan. Assume this is the mortgage on your house. If you elected to pay an additional principal amount of $150.00 each month, in how many months would you pay off your mortgage?

Not considering taxes, how much would you save in interest paid to service your loan when paying the additional principal compared to paying the loan off over the original time period?

Excel file needs to contains the completed amortization table for the original loan and the completed amortization table with the additional principal payment.

Identify the month the loan is paid off and the dollar amount of interest saved.

Solutions

Expert Solution

Answer:

Month required to pay off the the mortgage with additional $150 = 202 months

Saving in Interest by increasing payment = $20,940.54

Explanation and workings:

Formulas:

ekkarill92 answered 1 year ago
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