Question:

FINC3304 (BUSINESS FINANCE)

Final Project - Fall 2017

Instruction:

You need to work on the mini-projects in Excel. Your final mini-project report should be well-organized and typed in a Word file. Are required to submit both your Word report and Excel files to the instructor using the mini-project submission tool in Blackboard. The style and organization of the project accounts for 10 points.

Mini-Project 1: Mortgage Loan Analysis (60 points):

You plan to buy a house in Houston in January 2018. The sale price is $350,000. You need to pay 20% down payments and borrow additional 80% from Wells Fargo with a 20-year, 3.6% fixed-rate mortgage loan. You are expected to pay an equal MONTHLY payment starting from March 2018 for a total of 20 years.

(1) Calculate your expected monthly mortgage payment.

(2) Develop the 2018~2038 amortization table for your mortgage.

(1) When you prepare my 2018 tax filing, what is the total mortgage interest payment that you can consider for the tax deduction?