Question
A home is purchased for $230,000 with an amortized loan over 15 years at an interest rate of 4.4%. Complete an amortized loan schedule in
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A home is purchased for $230,000 with an amortized loan over 15 years at an interest rate of 4.4%. Complete an amortized loan schedule in a spread sheet and answer the following questions.
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Find the balance owed after 5 years
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Determine the cost of the loan (interest).
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If an extra $100 a month is paid towards the balance find the new number of payments and the total cost of the loan.
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If the interest rate of the loan is doubled to 8.8% does the cost of the loan double? Explain
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If the principal of the loan is doubled to $460,000 does the cost of the loan double? Explain
-
If the term of the loan is doubled to 30 years does the cost of the loan double? Explain
A home is purchased for $230,000 with an amortized loan over 15 years at an interest rate of 4.4%. Complete an amortized loan schedule in a spread sheet and answer the following questions.
-
Find the balance owed after 5 years
-
Determine the cost of the loan (interest).
-
If an extra $100 a month is paid towards the balance find the new number of payments and the total cost of the loan.
-
If the interest rate of the loan is doubled to 8.8% does the cost of the loan double? Explain
-
If the principal of the loan is doubled to $460,000 does the cost of the loan double? Explain
-
If the term of the loan is doubled to 30 years does the cost of the loan double? Explain
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
3rd edition
978-0132890540
