My professor says I am treating it as single cash flow. Not monthly payments. My
ID: 2652729 • Letter: M
Question
My professor says I am treating it as single cash flow. Not monthly payments. My professor said I have to remember my own contribution plus employers contribution. Because this part is wrong, that means part B,C and D are wrong. Please help correct this.
Loan Amortization Problem tow A:tai yeo aoal salaxy 1 x32. x) ane thai th nk yew wa from, has determined that it will lend you, loan amount= your annual salary x 2.5 interest rate = 19 x 0.7% Assume that you will borrow for 20 years and you will make monthly payments at the end of each month A) Calculate your monthly payment (Type your calculator inputs, ie. N=, PV= and so on) -interest rate, n, and FV Please identify PV, PMT, B) Calculate the total interest amount you will pay over the life of the loan C) If you had 20% of the amount you could borrowin your savings and you could use it as a down payment (ie. in this case you borrowed only 80% of the original amount) how much lower would have been the total interest you would have paid over the life of the loan (compared to what you found in B)? Assume all other terms of the loan remain the sameExplanation / Answer
A) Annual Salary 608000 19*32000 Loan Amount 1520000 608,000*2.5 Interest rate 13.3 19*0.7% Monthly payment $18,133.79 B) Total Amount $4,352,109.64 18133.79*240 months Interest Amount $2,832,109.64 (4,352,109.64 - $1,520,000) C) Loan Amount 1216000 1,520,000 * 80% Interest rate 13.3 19*0.7% Monthly payment 14,507.032119 Total Amount $3,481,687.71 14507.03*240 months Interest Amount $2,265,687.71 ($3,481,687 - $1,216,000) D) Month Beginning Balance Payment Interest Payment(13.3/12)% Principal payment Ending Balance 1 1216000 14,507.032119 13477.33333 1,029.698785 1,214,970.301215 2 1,214,970.301215 14,507.032119 13465.92084 1,041.111280 1,213,929.189935 3 1,213,929.189935 14,507.032119 13454.38186 1,052.650263 1,212,876.539671 4 1,212,876.539671 14,507.032119 13442.71498 1,064.317137 1,211,812.222534 5 1,211,812.222534 14,507.032119 13430.9188 1,076.113319 1,210,736.109215 6 1,210,736.109215 14,507.032119 13418.99188 1,088.040241 1,209,648.068974 7 1,209,648.068974 14,507.032119 13406.93276 1,100.099354 1,208,547.969620 8 1,208,547.969620 14,507.032119 13394.74 1,112.292122 1,207,435.677498 9 1,207,435.677498 14,507.032119 13382.41209 1,124.620026 1,206,311.057471 10 1,206,311.057471 14,507.032119 13369.94755 1,137.084565 1,205,173.972907 11 1,205,173.972907 14,507.032119 13357.34487 1,149.687252 1,204,024.285654 12 1,204,024.285654 14,507.032119 13344.6025 1,162.429619 1,202,861.856035 13 1,202,861.856035 14,507.032119 13331.7189 1,175.313214 1,201,686.542821 14 1,201,686.542821 14,507.032119 13318.69252 1,188.339602 1,200,498.203219 15 1,200,498.203219 14,507.032119 13305.52175 1,201.510366 1,199,296.692853 16 1,199,296.692853 14,507.032119 13292.20501 1,214.827106 1,198,081.865746 17 1,198,081.865746 14,507.032119 13278.74068 1,228.291440 1,196,853.574307 18 1,196,853.574307 14,507.032119 13265.12712 1,241.905003 1,195,611.669303 19 1,195,611.669303 14,507.032119 13251.36267 1,255.669450 1,194,355.999853 20 1,194,355.999853 14,507.032119 13237.44567 1,269.586454 1,193,086.413399
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