SOLUTION: Suppose you are have purchased a house and need a loan for $255,000. You decide to do a 30 year mortgage loan at 4% with monthly payments. a) Create an Amortization table on Exce

Question 1201084: Suppose you are have purchased a house and need a loan for $255,000. You decide to do a 30
year mortgage loan at 4% with monthly payments.
a) Create an Amortization table on Excel with the following headers:
Months Payment Applied to Interest Applied to Loan Balance
b) What is the total amount in interest you pay if you pay off the loan as scheduled?
c) What interest do you pay in the first year (first 12 months)?
d) What interest do you pay in the last year (last 12 months)?
e) If you pay an extra $125 per payment from the beginning of the loan, when will you have it
paid off? How much will you save on total interest if you do this?
(20 points)
2) Use Excel or otherwise to solve this percentage problem. You sell agricultural commodities and
you are interested in the price of corn in the past four weeks. The current price of corn is
$318.(per 100 bushels) This is an increase of 3% from last week. Last weeks price was a 1.5%
decrease form the price two weeks ago. The price two weeks ago was 2% increase from the
price three weeks ago and the price three weeks ago was a 1.25% decrease form the price four
weeks ago. What was the price four weeks ago?
(10 points)
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
Suppose you are have purchased a house and need a loan for $255,000. You decide to do a 30 year mortgage loan at 4% with monthly payments.

a) Create an Amortization table on Excel with the following headers:
Months Payment Applied to Interest Applied to Loan Balance.

here are the first 25 payments or so.

fhere are the last 25 payments or so.

b) What is the total amount in interest you pay if you pay off the loan as scheduled?

$183,267.24.

c) What interest do you pay in the first year (first 12 months)?

$ 10,118.27.

d) What interest do you pay in the last year (last 12 months)?

$311.66.

e) If you pay an extra $125 per payment from the beginning of the loan, when will you have it paid off? How much will you save on total interest if you do this?

paid off in 302 months = 25 years and 2 months.
interest saved is $183,267.24 - $149,568.48 = $33,698.76.

2) Use Excel or otherwise to solve this percentage problem. You sell agricultural commodities and
you are interested in the price of corn in the past four weeks. The current price of corn is
$318.(per 100 bushels) This is an increase of 3% from last week. Last weeks price was a 1.5%
decrease form the price two weeks ago. The price two weeks ago was 2% increase from the
price three weeks ago and the price three weeks ago was a 1.25% decrease form the price four
weeks ago. What was the price four weeks ago?

excel worksheet is shown below:
it contains the answer to this problem.

RELATED QUESTIONS
1) Suppose you are have purchased a house and need a loan for $255,000. You decide to do... (answered by Theo)

You now need to secure a mortgage. Assume there are no closing costs or fees and you are... (answered by rfer)

Fifteen years ago a couple purchased a house for $150,000.00 by paying a 20% down payment (answered by ikleyn)

During this time of pandemic, many lending institutions offer a loan package to wage... (answered by Boreal)

You borrow $650,000 from a mortgage company for a 30 year loan at 7.1% interest to... (answered by math_tutor2020)

Your annual income is $50,000. You want to take out a mortgage loan to buy a house. The... (answered by Theo)

Fifteen years ago a couple purchased a house for $150,000.00 by paying a 20 % down... (answered by Theo)

Fifteen years ago a couple purchased a house for by paying a 20% down payment and... (answered by math_tutor2020)

This year (10 years after you first took out the loan), you check your loan balance. Only (answered by Alan3354)