Suppose an apartment you want to purchase costs $500,000. You can put down 20% in cash...

1. Set up a monthly amortization schedule table for the loan (Input: 20%, creating and copying formulas and Excel finance functions: 30%). Use 360 months (30*12=360)

2. What is the sum of total payments made over the life of the loan? What is the sum of total interest paid over the life of the loan? What is the difference of the two numbers? (Summation function 10%, fill color in your answer cells)

3. What is the balance of the loan AFTER ten years? (build-in Finance function 10%)

Show ALL of your work through excel functions (show excel functions for everything) please!

Solutions

Expert Solution

Please do rate me and mention doubts in the comments section.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Suppose an apartment you want to purchase costs $500,000. You can put down 20% in cash...

Suppose an apartment you want to purchase costs $500,000. You can put down 20% in cash and take out a 30-year fixed rate mortgage loan for the remaining. You believe that you can get an APR of 6.5% on such a mortgage loan at a local bank. Suppose the loan calls for equal monthly payments. Set up a monthly amortization schedule table for the loan (Input: 20%, creating and copying formulas and Excel finance functions: 30%). What is the sum...

I. Suppose an apartment you want to purchase costs $500,000. You can put down 20% in...

I. Suppose an apartment you want to purchase costs $500,000. You can put down 20% in cash and take out a 30-year fixed rate mortgage loan for the remaining. You believe that you can get an APR of 6.5% on such a mortgage loan at a local bank. a. Suppose the loan calls for equal monthly payments. Please set up a monthly amortization schedule table for the loan (Input setting: 20%, creating and copying formulas and Excel finance functions: 40%)....

You financed the purchase of a $300,000 apartment with a down payment in cash of 20%...

You financed the purchase of a $300,000 apartment with a down payment in cash of 20% of the purchase price. The remaining 80% is financed with a mortgage with a 1% monthly interest rate over the next 20 years. The mortgage is repaid with equal monthly installments. Compute the monthly installments on the mortgage. (5 points) What is the outstanding principal balance of the mortgage after 5 years (i.e., after 60 installments)? (5 points) Ten years later (after 120 installments),...

You are planning to purchase a house that costs $480,000. You plan to put 20% down...

You are planning to purchase a house that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.99% on a 30-year mortgage. Use function “PMT” to calculate your mortgage payment. Use function “PV” to calculate the loan amount given a payment of $1700 per month. What is the most that you can borrow? Use function “RATE” to calculate the interest rate given a payment of $1700...

If you want to purchase a home. You have $10,000 to put down. All you can...

If you want to purchase a home. You have $10,000 to put down. All you can afford is $1000.00 per month and you do not want to finance for more than 15 years @ 5%, (your taxes will be $55.00 per month and insurance $60.00 a month), what is the amount you can pay for the house? (Show all your work)

You are planning to purchase a condo that costs $480,000. You plan to put 20% down and borrow the remainder.

You are planning to purchase a condo that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.25% on a 30-year mortgage. Use function “PV” to calculate the loan amount given a payment of $1550 per month. What is the most that you can borrow? (Be sure that PV is the amount you borrow, not the cost of the house.) Use function “PMT” to calculate your...

You put 20% down on a home with a purchase price of $250,000. The down payment...

You put 20% down on a home with a purchase price of $250,000. The down payment is thus $50,000, leaving a balance owed of $200,000. A bank will loan you this remaining balance at 3.91% APR. You will make monthly end-of-the-period payments with a 30-year payment schedule. What is the monthly annuity payment under this schedule?

The purchase price of a property, land and improvement, was $1,625,000. you put 20% down payment...

The purchase price of a property, land and improvement, was $1,625,000. you put 20% down payment and the rest was financed. the mortgage is a 30 year loan at 6.5% principal-interest payment. taxes and insurance at the time of purchase are $18,000 each year. the vacancy rate is 8%, while the repair expenses averaged is $8,500 every year. you spend annually about $2,000 for miscellaneous and advertising costs. you manage the property yourself. determine the monthly cash flow from 30...

Suppose you are buying the first house for $500,000 with 20% down payment. You have arranged...

Suppose you are buying the first house for $500,000 with 20% down payment. You have arranged to finance the remaining amount with a 15-year, monthly payment, amortized mortgage at nominal annual rate of 3.6%. What is remaining balance after 10 years with 120 monthly payments? $180,68.90 $79,777.39 $167,123.45 $157,881.37 Which of the following statements is/are INCORRECT? Unlimited liability and limited life are two key advantages of the corporate form over other forms of busiess organizations. Limited liability is an advantage...

Suppose that you want to purchase a home for $220,000 using a down payment as described...

Suppose that you want to purchase a home for $220,000 using a down payment as described below and you finance the rest of the purchase by taking out a 15-year mortgage at 4.5% interest compounded monthly. The amount of the down payment is $56,083. Construct an amortization table for the entire length of the loan making sure to include columns for the payment number, the amount of the payment, the amount of each payment that goes towards the principal, the amount...

Subjects