PLEASE HELP WITH F, G, I2, AND J.PLEASE SHOW YOUR WORK. If you could include Excel formulas that is greatly appreciated as well. These are the only problems I am having issues with.
Suppose you take out a $106,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 6%. To keep things simple, we will assume you make payments on the loan annually at the end of each year.
a. What is your annual payment on the loan? ALREADY KNOW THE ANSWER
b. Construct a mortgage amortization. ALREADY KNOW THE ANSWER
c. What fraction of your initial loan payment is interest? ALREADY KNOW THE ANSWER
d. What fraction of your initial loan payment is amortization? ALREADY KNOW THE ANSWER
e. What is the total of the loan amount paid off after 10 years (halfway through the life of the loan)? ALREADY KNOW THE ANSWER
f. If the inflation rate is 2%, what is the real value of the first (year-end) payment?
g. If the inflation rate is 2%, what is the real value of the last (year-end) payment?
h. Now assume the inflation rate is 8% and the real interest rate on the loan is unchanged. What must be the new nominal interest rate? ALREADY KNOW THE ANSWER
i-1. Recompute the amortization table. ALREADY KNOW THE ANSWER
i-2. What is the real value of the first (year-end) payment in this high-inflation scenario?
j. What is the real value of the last payment in this high-inflation scenario?
_________________________________________________________________________
Complete this question by entering your What is your annual payment on the loan? Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Construct a mortgage amortization. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave enter "0" wherever required. Enter all values as positive value. Complete this question by enterin c. What fraction of your initial loan pay d. What fraction of your initial loan pay Note: Do not round intermediate calcul e. What is the total of the loan amount paid off after 10 f. If the inflation rate is 2%, what is the real value of th g. If the inflation rate is 2%, what is the real value of t Note: Do not round intermediate calculations. Round yc Now assume the inflation rate is 8% and the real interest rate on the loa interest rate? Note: Do not round intermediate calculations. Enter your answer as a wl Recompute the amortization table. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Lea enter " 0 " wherever required. Enter all values as positive value. i-2. What is the real value of the first (year-end) payment in this high-inflation scenario? j. What is the real value of the last payment in this high-inflation scenario? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Complete this question by entering your What is your annual payment on the loan? Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Construct a mortgage amortization. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave enter "0" wherever required. Enter all values as positive value. Complete this question by enterin c. What fraction of your initial loan pay d. What fraction of your initial loan pay Note: Do not round intermediate calcul e. What is the total of the loan amount paid off after 10 f. If the inflation rate is 2%, what is the real value of th g. If the inflation rate is 2%, what is the real value of t Note: Do not round intermediate calculations. Round yc Now assume the inflation rate is 8% and the real interest rate on the loa interest rate? Note: Do not round intermediate calculations. Enter your answer as a wl Recompute the amortization table. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Lea enter " 0 " wherever required. Enter all values as positive value. i-2. What is the real value of the first (year-end) payment in this high-inflation scenario? j. What is the real value of the last payment in this high-inflation scenario? Note: Do not round intermediate calculations. Round your answers to 2 decimal places
