Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A loan of $470,000 is amortized over 30 years with payments at the end of each month and an interest rate of 7.3%, compounded monthly.

A loan of $470,000 is amortized over 30 years with payments at the end of each month and an interest rate of 7.3%, compounded monthly. Use Excel to create an amortization table showing, for each of the 360 payments, the beginning balance, the interest owed, the principal, the payment amount, and the ending balance. Answer the following, rounding to the nearest penny. a) Find the amount of each payment. $ b) Find the total amount of interest paid during the first 15 payments. $ c) Find the total amount of interest paid over the life of the loan. $ d) Find the total of all payments made over 30 years. $ Suppose that payment number 6 is skipped and the interest owed for month 6 is added to the balance. Payments then resume as usual for the remainder of the 30 years. e) Find the balance owing at the end of month 6. $ f) Find the balance remaining after the 360th payment. $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematics Of Finance

Authors: Robert Brown, Petr Zima

2nd Edition

0071756051, 9780071756051

More Books

Students also viewed these Finance questions

Question

=+What are the actions in this decision process?

Answered: 1 week ago