*using generic template, please show formulas used. You consider purchasing a ho
ID: 2759535 • Letter: #
Question
*using generic template, please show formulas used.
You consider purchasing a house for $400,000 and have a 20% down payment. The bank offers a 30-year fixed loan at an APR of 4.0%. Use two decimal places in your answers. Show work in excel template below: Determine the following: Using the Excel template shown below; prepare an amortization schedule for the length of the loan. How much total interest did you pay in the first year of the loan? How much of your principal balance was reduced in the first year? How much total interest did you pay in the 15th year of the loan? How much of your principal balance was reduced in the 15th year? How much interest did you pay in the last year of the loan? When would the loan be paid off if you added an extra $200 each month starting with the first payment? What is the amount of the last payment under this scenario (g)?Explanation / Answer
Answer: Payment=320000/17.2920 (PVIFA 4%,30)
=18506
Answer:b) 12800
Answer:c) 5706
Answer:d) 8625
Answer:e) 9881
Answer:f) 732
Sale Price 400000 Down Payment 80000 Finance 320000 Payment 18506 n BB Interest Payment EB 0 320000 0 0 320000 1 320000 12800 5706 314294 2 314294 12572 5934 308360 3 308360 12334 6172 302188 4 302188 12088 6418 295770 5 295770 11831 6675 289094 6 289094 11564 6942 282152 7 282152 11286 7220 274932 8 274932 10997 7509 267424 9 267424 10697 7809 259615 10 259615 10385 8121 251493 11 251493 10060 8446 243047 12 243047 9722 8784 234263 13 234263 9371 9135 225127 14 225127 9005 9501 215626 15 215626 8625 9881 205745 16 205745 8230 10276 195469 17 195469 7819 10687 184782 18 184782 7391 11115 173667 19 173667 6947 11559 162108 20 162108 6484 12022 150086 21 150086 6003 12503 137584 22 137584 5503 13003 124581 23 124581 4983 13523 111058 24 111058 4442 14064 96995 25 96995 3880 14626 82368 26 82368 3295 15211 67157 27 67157 2686 15820 51337 28 51337 2053 16453 34885 29 34885 1395 17111 17774 30 17774 732 17774 0Related Questions
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