document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1201083>Question 1201083</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 1) Suppose you are have purchased a house and need a loan for $255,000. You decide to do a 30<BR>\n" );
document.write( "year mortgage loan at 4% with monthly payments.<BR>\n" );
document.write( "a) Create an Amortization table on Excel with the following headers:<BR>\n" );
document.write( "Months Payment Applied to Interest Applied to Loan Balance<BR>\n" );
document.write( "b) What is the total amount in interest you pay if you pay off the loan as scheduled?<BR>\n" );
document.write( "c) What interest do you pay in the first year (first 12 months)?<BR>\n" );
document.write( "d) What interest do you pay in the last year (last 12 months)?<BR>\n" );
document.write( "e) If you pay an extra $125 per payment from the beginning of the loan, when will you have it<BR>\n" );
document.write( "paid off? How much will you save on total interest if you do this?\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #836150 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=836150\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> a) Create an Amortization table on Excel with the following headers:<BR>\n" );
document.write( "Months Payment Applied to Interest Applied to Loan Balance\r<BR>\n" );
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document.write( "b) What is the total amount in interest you pay if you pay off the loan as scheduled?<BR>\n" );
document.write( "$183,267.24\r<BR>\n" );
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document.write( "c) What interest do you pay in the first year (first 12 months)?<BR>\n" );
document.write( "$10,118.27\r<BR>\n" );
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document.write( "d) What interest do you pay in the last year (last 12 months)?<BR>\n" );
document.write( "$220.25\r<BR>\n" );
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document.write( "e) If you pay an extra $125 per payment from the beginning of the loan, when will you have it<BR>\n" );
document.write( "paid off? <BR>\n" );
document.write( "paid off by end of month 302.\r<BR>\n" );
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document.write( "f)How much will you save on total interest if you do this?<BR>\n" );
document.write( "$33,698.76 </SPAN>\n" );
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