Assignment: Build an Excel sheet that will compute flexibly the monthly amortization payments, monthly interest amounts,...

Assignment: Build an Excel sheet that will compute flexibly the monthly amortization payments, monthly interest amounts, monthly amortization principal amounts, and any other computationally relevant variables you may deem important. The Excel file must be driven by the pertinent formulae that define the typical Canadian mortgage contracts. We will examine your programming skills in Excel in this particular assignment.

Here are following mortgage facts:

Mortgage amount: Flexible and any amount the borrower wishes - i.e., your choice

Payment frequency: Monthly

Initial mortgage contract rate: flexible rate - i.e., your choice

Maturity: 20 years.

Rollover period: 2 years.

The first new contract rate: 2% higher than the initial rate at the end of the first rollover period

The second new contract rate: 3% lower than at the first new contract rate at the end of the second rollover period. Once contracted, this rate remains constant until the end of 20 years.

Solutions

Expert Solution

Assumptions -

Mortgage amount - 100,000

Initial mortgage contract rate - 12%

After 22 years, rate - 14%

After 24 years, rate - 11%

Year	Amount	Rate	Monthly Payments	Total Yearly Payment
1	1,00,000	12	1000	12000
2	1,00,000	12	1000	12000
3	1,00,000	12	1000	12000
4	1,00,000	12	1000	12000
5	1,00,000	12	1000	12000
6	1,00,000	12	1000	12000
7	1,00,000	12	1000	12000
8	1,00,000	12	1000	12000
9	1,00,000	12	1000	12000
10	1,00,000	12	1000	12000
11	1,00,000	12	1000	12000
12	1,00,000	12	1000	12000
13	1,00,000	12	1000	12000
14	1,00,000	12	1000	12000
15	1,00,000	12	1000	12000
16	1,00,000	12	1000	12000
17	1,00,000	12	1000	12000
18	1,00,000	12	1000	12000
19	1,00,000	12	1000	12000
20	1,00,000	12	1000	12000
21	1,00,000	12	1000	12000
22	1,00,000	12	1000	12000
23	1,00,000	14	1166.67	14000
24	1,00,000	14	1166.67	14000
25	1,00,000	11	916.67	11000
26	1,00,000	11	916.67	11000

jeff jeffy answered 1 year ago

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