NEEDS TO BE ON EXCEL WITH FORMULAS PLEASE AND THANK YOU
A. You are thinking of purchasing a house that costs $461,000. You have $25,000 in cash that you can use as a down payment, but you need to borrow the rest of the purchase price. Assume there are no closing costs. The bank is offering a 20-year mortgage that requires monthly payments and has an annual interest rate of 5.35% per year. - What will your monthly payments be if you sign up for this mortgage? - Present the amortization schedule (Beginning balance, Monthly payment, Principal payment, Interest payment, Ending balance) on a monthly basis using Excel. - Calculate the total amount of interest paid throughout the life of the loan (sum up the amounts in the Interest column). - Create a graph depicting the monthly payments and the portions of interest and principal for each monthly payment throughout the life of the loan. B. Suppose you have the option to take out a 15 -year mortgage with an annual interest rate of 5.13%. What will the new monthly payment be? - Present a new amortization schedule (Beginning balance, Monthly payment, Principal payment, Interest payment, Ending balance) on a new worksheet in the same Excel workbook. - Calculate the total amount of interest paid throughout the life of the loan (sum up the amounts in the Interest column). - Create a graph depicting the monthly payments and the portions of interest and principal for each monthly payment throughout the life of the loan. C. How much do you save if you go with the 15 -year mortgage versus the 20-year mortgage example above? Reference the appropriate cells in the previous worksheets to compute the difference on this worksheet. Please elaborate on the savings amount in words rather than simply providing the difference figure. (Hint: Compute the difference between the total interest paid in parts A and B). I have used color coding to help you understand which cells the formulas correspond to. A. You are thinking of purchasing a house that costs $461,000. You have $25,000 in cash that you can use as a down payment, but you need to borrow the rest of the purchase price. Assume there are no closing costs. The bank is offering a 20-year mortgage that requires monthly payments and has an annual interest rate of 5.35% per year. - What will your monthly payments be if you sign up for this mortgage? - Present the amortization schedule (Beginning balance, Monthly payment, Principal payment, Interest payment, Ending balance) on a monthly basis using Excel. - Calculate the total amount of interest paid throughout the life of the loan (sum up the amounts in the Interest column). - Create a graph depicting the monthly payments and the portions of interest and principal for each monthly payment throughout the life of the loan. B. Suppose you have the option to take out a 15 -year mortgage with an annual interest rate of 5.13%. What will the new monthly payment be? - Present a new amortization schedule (Beginning balance, Monthly payment, Principal payment, Interest payment, Ending balance) on a new worksheet in the same Excel workbook. - Calculate the total amount of interest paid throughout the life of the loan (sum up the amounts in the Interest column). - Create a graph depicting the monthly payments and the portions of interest and principal for each monthly payment throughout the life of the loan. C. How much do you save if you go with the 15 -year mortgage versus the 20-year mortgage example above? Reference the appropriate cells in the previous worksheets to compute the difference on this worksheet. Please elaborate on the savings amount in words rather than simply providing the difference figure. (Hint: Compute the difference between the total interest paid in parts A and B). I have used color coding to help you understand which cells the formulas correspond to
