Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please tell me how to solve this problem by excel function You want to buy a $200,000 house. You will pay the seller with 20%
please tell me how to solve this problem by excel function
You want to buy a $200,000 house. You will pay the seller with 20% of your own cash and borrow the remaining 80% with a mortgage loan (the seller receives $200,000, you owe the bank 80% of the purchase price). You are considering two different mortgage loans that require monthly payments Loan 1 is a 30-year, fixed rate, fully amortizing mortgage loan with a 4.25% rate. Loan 2 is a 15-year, fixed rate, fully amortizing loan with a 4.25% rate. For each loan, complete an amortization table and find the total interest you will pay over the life of the loan (assuming the same payment each month). Summary Loan Total interest paid Loan 1 Loan 2 Inputs for Loan 1 Amortization Inputs for Loan 2 Amortization Use the appropriate formulas and Excel function to solve the problem (typed-in solutions receive 0 credit) Answers $123,357.38 $56,656.18 PV PMT FV PV PMT FV Loan 1 Amortization Table Loan 2 Amortization Table Month Beg Bal Paymet Interest Principal End Bal Month Beg Bal Payment Interest Principa End BalStep 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