Chapter 121 Amortization of Loans and Mortgages 527 CASE 12 Business and Property Spreadsheet Project The spreadsheet calculations should be set up in a systematic manner. Your set-up should contain a list of the given values, and as many calculated values as possible. Make your spreadsheet as 'active' as possible by using cell references (so that if one value is changed, subseguent calculations will automatically update). Use absolute cell references in special situations. Bob and Angelique Mackenzie bought a property valued at $84,000 for $15,000 down with the balance amortized over 20 years. The terms of the mortgage require equal payments at the end of each month. Interest on the mortgage is 34% compounded semi-annually and the mortgage is renewable after five years. a. What is the size of each monthly payment? b. Prepare an amortization schedule for the first five-year term. Make sure your values are rounded to the nearest cent. Express totals at the bottom of each column as currency c. What is the cost of the debt during the first five-year term? d If the mortgage is renewed for a further five years at 4.2% compounded semi-annually, what will be the size of each monthly payment? lhe Mackenzie's also bought a business for $90,000 1 hey borrowed the money to buy the business at 69% compounded semi-annually and are to repay the debt by making quarterly payments of $3645. c. How many payments are required to repay the loan? f. What is the term of the loan in years and months? g. Preparea complete amo ortization schedule for the loan. Make sure your v alues are rounded to the nearest cent. Express totals at the bottom of each column as cur h. What is the principal reduction in the 6h year? i. What is the total cost of financing the debt? j. If Angelique makes a lump sum payment of $10,000 at the end of the fourth year, by how much is the amortization ency period shortened? Chapter 121 Amortization of Loans and Mortgages 527 CASE 12 Business and Property Spreadsheet Project The spreadsheet calculations should be set up in a systematic manner. Your set-up should contain a list of the given values, and as many calculated values as possible. Make your spreadsheet as 'active' as possible by using cell references (so that if one value is changed, subseguent calculations will automatically update). Use absolute cell references in special situations. Bob and Angelique Mackenzie bought a property valued at $84,000 for $15,000 down with the balance amortized over 20 years. The terms of the mortgage require equal payments at the end of each month. Interest on the mortgage is 34% compounded semi-annually and the mortgage is renewable after five years. a. What is the size of each monthly payment? b. Prepare an amortization schedule for the first five-year term. Make sure your values are rounded to the nearest cent. Express totals at the bottom of each column as currency c. What is the cost of the debt during the first five-year term? d If the mortgage is renewed for a further five years at 4.2% compounded semi-annually, what will be the size of each monthly payment? lhe Mackenzie's also bought a business for $90,000 1 hey borrowed the money to buy the business at 69% compounded semi-annually and are to repay the debt by making quarterly payments of $3645. c. How many payments are required to repay the loan? f. What is the term of the loan in years and months? g. Preparea complete amo ortization schedule for the loan. Make sure your v alues are rounded to the nearest cent. Express totals at the bottom of each column as cur h. What is the principal reduction in the 6h year? i. What is the total cost of financing the debt? j. If Angelique makes a lump sum payment of $10,000 at the end of the fourth year, by how much is the amortization ency period shortened