*please show formulas on excel*

TU X X A wat Painter TI Font Paragraph You are planning to buy a 4 bedroom house in Hamilton that has a price of $1,200,000. One of the local banks has offered you a mortgage at a quoted rate of 5% per year. Interest will be compounded semi-annually. The bank has indicated that they will require 20% down payment. The bank is prepared to lend you the remainder of the purchase price of the house. The amortization period will be 25 years and the term of the mortgage will be 4 years. You are gomg to make monthly payments on your mortgage. The payments will be made at the end of each period. You have heard from your friend who has just completed AFF210, that by making additional payments on your mortgage during the initial term, you can reduce the remaining balance at the end of the initial term. Your friend has shown you a sample amortization schedule template (below) Sample Mortgage Schedule Amount Payment Number Principal Amount at the Beginning Interest Expense incurred during the month Balance Owing Before Payment Principal Paid Amount Principal Principal Component Amount of Payment at the End of Period Payment Payment a) Answer the following questions: i What is the amount of your periodic payment? ii. How much will you pay in total on your mortgage over the life of your mortgage? it. What is total interest that will be paid over the life of your mortgage? iv. How much principal will you have paid off during the initial term of your mortgage? V. How much interest will you have paid off during the initial term of your mortgage? b) Prepare a mortgage amortization schedule to illustrate how the mortgage will be repaid over the next 25 years and calculate the following: i. Use the amortization table to determine the first payment where the interest portion of the payment is less than 50% of the total payment. Identify the payment number where this occurs c) Print the amortization schedule separately using the following instruction Do NOT print the entire mortgage schedule. Hide the rows in between and print ONLY the. first 10 rows and the last 10 rows of the mortgage schedule. d) Assuming that you decide to make additional annual payments of $15,000 during the initial term of your mortgage, how much less do you owe to the bank at the end of the term! The extra payments will be made in months 12, 24, 36 and 48. Assuming you make no additional extra payments during the life of your mortgage how much interest do you save, by making the extra payments during the initial term of your mortgage! English (United States) 3 2177 words TU X X A wat Painter TI Font Paragraph You are planning to buy a 4 bedroom house in Hamilton that has a price of $1,200,000. One of the local banks has offered you a mortgage at a quoted rate of 5% per year. Interest will be compounded semi-annually. The bank has indicated that they will require 20% down payment. The bank is prepared to lend you the remainder of the purchase price of the house. The amortization period will be 25 years and the term of the mortgage will be 4 years. You are gomg to make monthly payments on your mortgage. The payments will be made at the end of each period. You have heard from your friend who has just completed AFF210, that by making additional payments on your mortgage during the initial term, you can reduce the remaining balance at the end of the initial term. Your friend has shown you a sample amortization schedule template (below) Sample Mortgage Schedule Amount Payment Number Principal Amount at the Beginning Interest Expense incurred during the month Balance Owing Before Payment Principal Paid Amount Principal Principal Component Amount of Payment at the End of Period Payment Payment a) Answer the following questions: i What is the amount of your periodic payment? ii. How much will you pay in total on your mortgage over the life of your mortgage? it. What is total interest that will be paid over the life of your mortgage? iv. How much principal will you have paid off during the initial term of your mortgage? V. How much interest will you have paid off during the initial term of your mortgage? b) Prepare a mortgage amortization schedule to illustrate how the mortgage will be repaid over the next 25 years and calculate the following: i. Use the amortization table to determine the first payment where the interest portion of the payment is less than 50% of the total payment. Identify the payment number where this occurs c) Print the amortization schedule separately using the following instruction Do NOT print the entire mortgage schedule. Hide the rows in between and print ONLY the. first 10 rows and the last 10 rows of the mortgage schedule. d) Assuming that you decide to make additional annual payments of $15,000 during the initial term of your mortgage, how much less do you owe to the bank at the end of the term! The extra payments will be made in months 12, 24, 36 and 48. Assuming you make no additional extra payments during the life of your mortgage how much interest do you save, by making the extra payments during the initial term of your mortgage! English (United States) 3 2177 words