SOLUTION: 1) 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 E
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-> SOLUTION: 1) 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 E
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Question 1201083: 1) 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?
You can put this solution on YOUR website! 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?
$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)?
$220.25
e) If you pay an extra $125 per payment from the beginning of the loan, when will you have it
paid off?
paid off by end of month 302.
f)How much will you save on total interest if you do this?
$33,698.76
