Base Case
rate	0.0325
# years	30
# periods per year
									Find the
Find the Loan Amount			Find the Payment Amount			Find the Rate			Interest and Time with Additional Payment
rate			rate			rate			rate
# years	30		# years	30		# years	30		# years
# periods per year			# periods per year			# periods per year			# periods per year
rate per period			rate per period			rate per period			rate per period
total periods			total periods			total periods			total periods
payment per period			payment per period			payment per period	$		payment per period	$
loan amount			loan amount	$		loan amount	$		additional payment per period	$
total paid			total paid			total paid			total payment per period
total interest paid			total interest paid			total interest paid			loan amount	$
									total paid
									total interest paid

You are planning to purchase a condo that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.25% on a 30-year mortgage.

1. Use function PV to calculate the loan amount given a payment of $1550 per month. What is the most that you can borrow? (Be sure that PV is the amount you borrow, not the cost of the house.)
2. Use function PMT to calculate your mortgage payment.
3. Use function RATE to calculate the interest rate given a payment of $1550 and a loan amount of $384,000.
4. For each scenario, calculate the total interest that you will have paid once the mortgage is paid off. (There is not a function for this, enter the formula into the cell.)
5. For each scenario, calculate the total cost of the home purchase. (Down payment plus principle (loan amount) plus interest.) (You will have to add some cells for this.)
6. Assume that you plan to pay an extra $300 per month on top of your mortgage payment that you calculated in #2, calculate how long it will take you to pay off the loan given the higher payment. (Use the rate, PMT and PV from #2). Calculate how much interest you will pay in total. Compare this to the value that you calculated for #2