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
Next > < Previous

Related Solutions

Please show your work and formula on excel sheet. Thank you. Assume you borrow $8,000,000 with...
Please show your work and formula on excel sheet. Thank you. Assume you borrow $8,000,000 with a coupon rate of 8% from a bank as a mortgage against your newly renovated plant. The loan is paid off in 7 years. You will pay an equal amount every year until the loan is fully paid off. What are the interest and principal payments for each year of the loan.
Use Excel to show your work and include the formula in the cell to show how...
Use Excel to show your work and include the formula in the cell to show how you arrived at your figures. Round percentages (example if 49.2, round to 49). Background: ABC, Inc., produces widgets. The company manufactures three levels of widgets-Economy, Better and Best. Selected information on the widgets is given below. Economy Better Best Selling price per widget $40.00 $60.00 $90.00 Variable expense per widget production $22.00 $27.00 $31.50 Selling (5% of selling price) $2.00 $3.00 $4.50 All sales...
please show your work and formula on excel You can afford to pay $375 monthly car...
please show your work and formula on excel You can afford to pay $375 monthly car payments. Assume an annual interest rate of 6%, and assume 60 monthly payments. You can afford to put down $3,000. Can you afford to buy a car that costs $30,000?
please show your work and formula on excel You are now 25 years old. You would...
please show your work and formula on excel You are now 25 years old. You would like to retire when you are 65 years old. You want to receive starting at 65 an annual income of $150,000 per year until you are 95. How much money must you have in your retirement account when you are 65? Assume you can earn 4% per annum.
PLEASE SHOW WORK IN EXCEL WITH FORMULA You are constructing a two stock portfolio based on...
PLEASE SHOW WORK IN EXCEL WITH FORMULA You are constructing a two stock portfolio based on the information provided below. What dollar amount will you invest in each stock to achieve the desired return goal? Stock X Stock Y Expected Return 14.0% 9.0% Goal Return of Portfolio: 10.00% Dollar Amount to Invest: $20,000
Please explain your answers and use Excel to show the excel formula you used to get...
Please explain your answers and use Excel to show the excel formula you used to get your solution. 6. A manufacturing process produces connecting rods whose diameter is normally distributed with mean 1.495 cm and standard deviation .05 cm. In what range will the “middle 80%” of the diameters lie? What about the “middle 98%”?
Show your work in Excel and submit your excel sheet. Q. Your brother, age 30, working...
Show your work in Excel and submit your excel sheet. Q. Your brother, age 30, working for ABC Corp. wants to quit his job and go back to school for MBA degree. At his current job, he is making $60000 per year and was planning to work until age 65 years. If he goes back to school, he will forego two years of income, but his real income after graduation would be $90000 per year until retirement at age 65....
In EXCEL Please: you must show your work in Excel, which includes providing the formulas in...
In EXCEL Please: you must show your work in Excel, which includes providing the formulas in the cells, not just the summary value. You may not earn full points if you do not show your work in detail. JLR Enterprises provides consulting services throughout California and uses a job-order costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR, but not identifiable with specific clients, are...
Please show all your work step by step and all the formula that is used. This...
Please show all your work step by step and all the formula that is used. This is my 3rd time posting as people do not explain what they are doing. Therefore, do not answer if you can't explain. D. What is the present value (PV) of a 12-years lease arrangement with an interest rate of 7.5% that requires annual payments of $4250. Per year with first payment being due now? E. A recent college graduate hopes to have $200000. Saved...
PLEASE SHOW ALL WORK IN EXCEL. Use Bilingual sheet to answer this question. A national survey...
PLEASE SHOW ALL WORK IN EXCEL. Use Bilingual sheet to answer this question. A national survey of companies included a question that asked whether the company had at least one bilingual telephone operator. The sample results of 90 companies follow (Y denotes that the company does have at least one bilingual operator; N denotes that it does not). N N N N Y N Y N N Y N N N Y Y N N N N N Y N...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT