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please help. show formulas on excel. thank you! Homework Chapter 4 A mortgage loan in the amount of $100,000 is made at 12% interest for
please help. show formulas on excel. thank you!
Homework Chapter 4 A mortgage loan in the amount of $100,000 is made at 12% interest for 20 years. Payments are to be monthly in each part of this problem. a. What will monthly payments be if: 1. The loan is fully amortizing? 2. It is partially amortizing and a balloon payment of $50,000 is scheduled at the end of year 20? 3. It is a nonamortizing or interest only loan? 4. It is a negative amortizing loan and the loan balance will be $150,000 at the end of year 20 ? b. What will the loan balance be at the end of year 5 under parts a (1) through a (4)? c. What would be the interest portion of the payment scheduled for payment at the end of month 61 for each case (1) through (4) above? d. Assume that the lender charges 3 points to close the loans in parts a (1) through a (4). What would be the APR for each? e. If the loan is prepaid at the end of year 5 , what will be the effective rate of interest for each loan in parts a (1) through a (4)? Homework Chapter 4 A mortgage loan in the amount of $100,000 is made at 12% interest for 20 years. Payments are to be monthly in each part of this problem. a. What will monthly payments be if: 1. The loan is fully amortizing? 2. It is partially amortizing and a balloon payment of $50,000 is scheduled at the end of year 20? 3. It is a nonamortizing or interest only loan? 4. It is a negative amortizing loan and the loan balance will be $150,000 at the end of year 20 ? b. What will the loan balance be at the end of year 5 under parts a (1) through a (4)? c. What would be the interest portion of the payment scheduled for payment at the end of month 61 for each case (1) through (4) above? d. Assume that the lender charges 3 points to close the loans in parts a (1) through a (4). What would be the APR for each? e. If the loan is prepaid at the end of year 5 , what will be the effective rate of interest for each loan in parts a (1) through a (4) Step by Step Solution
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