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i need an excel method with every equation in that project. Create an amortization schedule for the following: a. A $500,000 loan with level payments
i need an excel method with every equation in that project.
Create an amortization schedule for the following: a. A $500,000 loan with level payments made at the end of each year for 30-years. Assume an annual effective interest rate on the loan of 4% and that the loan is repaid with the amortization method. b. A $500,000 loan with level payments made at the end of each year for 30-years. Assume an annual effective interest rate on the loan of 3.5% and that the loan is repaid with the amortization method. + c. A $500,000 loan with level payments is made at the end of each year for 20 years. Assume an annual effective interest rate on the loan of 4% and that the loan is repaid with the amortization method. Questions - comparing the loan in part (a) with a different rate and different term: How much total interest is saved by getting the lower rate? Compare total interest in part (a) with total interest in part (b). How much total interest is saved by having a shorter term? Compare total interest in part (a) with total interest in part (c). Excel project: Loan Total Interest Saved: Total Interest Saved: Interest on loan (a): Total Interest on loan (b): Total Interest on loan (c): a) Azortization nethod, 30 years at 45 b) szortization nethod, 30 years at 3.5% c) szortization nethod, 20 years at 45 Outstandin Period Payment Amount Interest Paid Principal Paid Period Outstandin g Loan Balance ######### Payment Amount Interest Paid Principal Paid Period & Loan Payment Amount Interest Paid Principal Paid Outstandin g Loan Balance ######### Balance ######### 0 1 ########## 2 3 0 1 2 3 4 0 1 2 2 3 4 4 5 5 5 6 7 6 7 8 9 10 8 9 10 11 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 12 13 14 15 16 17 18 19 20 30 Create an amortization schedule for the following: a. A $500,000 loan with level payments made at the end of each year for 30-years. Assume an annual effective interest rate on the loan of 4% and that the loan is repaid with the amortization method. b. A $500,000 loan with level payments made at the end of each year for 30-years. Assume an annual effective interest rate on the loan of 3.5% and that the loan is repaid with the amortization method. + c. A $500,000 loan with level payments is made at the end of each year for 20 years. Assume an annual effective interest rate on the loan of 4% and that the loan is repaid with the amortization method. Questions - comparing the loan in part (a) with a different rate and different term: How much total interest is saved by getting the lower rate? Compare total interest in part (a) with total interest in part (b). How much total interest is saved by having a shorter term? Compare total interest in part (a) with total interest in part (c). Excel project: Loan Total Interest Saved: Total Interest Saved: Interest on loan (a): Total Interest on loan (b): Total Interest on loan (c): a) Azortization nethod, 30 years at 45 b) szortization nethod, 30 years at 3.5% c) szortization nethod, 20 years at 45 Outstandin Period Payment Amount Interest Paid Principal Paid Period Outstandin g Loan Balance ######### Payment Amount Interest Paid Principal Paid Period & Loan Payment Amount Interest Paid Principal Paid Outstandin g Loan Balance ######### Balance ######### 0 1 ########## 2 3 0 1 2 3 4 0 1 2 2 3 4 4 5 5 5 6 7 6 7 8 9 10 8 9 10 11 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 12 13 14 15 16 17 18 19 20 30Step by Step Solution
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