Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Create the amortization spreadsheet and answer the following questions for a $ 4 5 0 , 0 0 0 1 5 - year fixed -

Create the amortization spreadsheet and answer the following questions for a $450,00015-year fixed-rate, constant-payment mortgage loan that is partially-amortizing with a balloon payment of $50,000. The contract interest rate is 6% with monthly payments. Up-front discount points on the loan are 2%, and there is a 1% pre-payment penalty.
a) What is the APR (annual percentage rate) on the loan - assuming that there is no early prepayment on the mortgage?
b) What is the EAR (effective annual rate) on the loan if it prepaid at the end of year 7?
c) What is the monthly mortgage payment during month 160?
d) How much cumulative interest is paid during the 14th year of the mortgage?
Please use excel and show formuals
Thanks
image text in transcribed

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

Finance Bundling And Finance Transformation

Authors: Frank Keuper, Kai-Eberhard Lueg

1st Edition

3658042109, 978-3658042103

More Books

Students also viewed these Finance questions

Question

2. What does the concept of goodness of fit refer to?

Answered: 1 week ago