Question
Hello There I want help with this problem by using Excel. 1- Ron borrows $3,000,000 to purchase a warehouse. The annual interest rate on the
Hello There
I want help with this problem by using Excel.
1- Ron borrows $3,000,000 to purchase a warehouse. The annual interest rate on the loan is 8.25%. and the term of the loan is 15 years. Answer the following questions about this loan:
a) What is the monthly payment necessary to amortize this loan?
b) What is the balance on the loan at the end of month 36?
c) How much interest will Ron pay in month 37?
d) How much principal will Ron pay in month37?
e) How much principal will Ron pay in the fourth year of this loan (payments 37 through 48)? 2- Suppose Frank refinances the loan at the end of month 48 at the payment, interest rate in the market (89). Rather than reducing his monthly however, Frank decides to keep making the same monthly payments. a) How many months must Frank continue to make the payments on this new loan the loan with this payment? b) By how many months has Frank shortened the term of the loan strategy? 3- Consider a 30-year, two-step for mortgage for $335,000. The initial interest rate is 5.5 percent, but the loan contract calls for rate adjustment at end of year 5. The new rate will be 2 percentage points above the 10-year Treasury bond yield. The interest rate is capped at 5 percentage points above the initial interest rate.If the T- bond is 7.5% at the time of the adjustment, what will the payments be for the last 25 years of this loan?
4- A prospective homebuyer can afford to make monthly loan payments of no more than $475. If the best rate she can obtain on a mortgage is 10% (for a 25-year term), what is the maximum amount she can borrow?
5- Zac mortgage requires her to pay $1,230 per month for the next 180 months. The balance on her loan is $130,000. What is the annual interest rate on Zac's loan?
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