Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please solve question 4 only with functions You are planning to purchase a house that costs $600,000. You plan to put 20% down and borrow
Please solve question 4 only with functions
You are planning to purchase a house that costs $600,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 4.5% on a 30-year mortgage. 1. Use the function "PMT" to calculate your mortgage payment. House costs 600000 Down payment 120000 PV of loan (PV) 480000 # of periods (T) 360 Periodic interest rate (r) 0.38% Payment amount (pmt) $2,432.09 2. Use the function "PV" to calculate the loan amount given a payment of $2,000 per month. What is the most that you can borrow? Payment amount (pnt) 2000 # of periods (T) 360 Periodic interest rate (c) 0.38% PV of loan (PV) $394,722.32 3. Use the function "RATE" to calculate the interest rate given a payment of $2,200 and a loan amount of $500,000. PV of loan (PV) 500000 Payment amount (pnt) 2200 # of periods (T) 360 Periodic interest rate (r) 0.28% APR 3.34% 4. For each scenario, calculate the total interest that you will have paid once the mortgage is paid off. (There is not a function for this, enter the formula into the cell.) Scenario 1 Scenario 2 Scenario 3 PV of Loan (principle) $ 480,000 $ $ 394,722 $ $ 500,000 $ Total Payments 875,552 $ 720,000 $ 792,000 $ Total Interests 275,552 120,000 192,000 You are planning to purchase a house that costs $600,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 4.5% on a 30-year mortgage. 1. Use the function "PMT" to calculate your mortgage payment. House costs 600000 Down payment 120000 PV of loan (PV) 480000 # of periods (T) 360 Periodic interest rate (r) 0.38% Payment amount (pmt) $2,432.09 2. Use the function "PV" to calculate the loan amount given a payment of $2,000 per month. What is the most that you can borrow? Payment amount (pnt) 2000 # of periods (T) 360 Periodic interest rate (c) 0.38% PV of loan (PV) $394,722.32 3. Use the function "RATE" to calculate the interest rate given a payment of $2,200 and a loan amount of $500,000. PV of loan (PV) 500000 Payment amount (pnt) 2200 # of periods (T) 360 Periodic interest rate (r) 0.28% APR 3.34% 4. For each scenario, calculate the total interest that you will have paid once the mortgage is paid off. (There is not a function for this, enter the formula into the cell.) Scenario 1 Scenario 2 Scenario 3 PV of Loan (principle) $ 480,000 $ $ 394,722 $ $ 500,000 $ Total Payments 875,552 $ 720,000 $ 792,000 $ Total Interests 275,552 120,000 192,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started