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Recently you purchased a nice home for $1,000,000 on January 1,201. The mortgage company asked to pay a down-payment of 20%($200,000). The remaining was financed
Recently you purchased a nice home for $1,000,000 on January 1,201. The mortgage company asked to pay a down-payment of 20%($200,000). The remaining was financed by the mortgage company with the following conditions: 1. Total period was 30 years. 2. Interest rate is 6.9% 3. Your payment should be at the end of each month. Required to calculate your monthly payments using the appropriate time value of money presented in the following page. You must prepare the following schedule in Excel and fill in the numbers. Make sure DO NOT type the numbers, rather transfer the cells. Please Note: For calculation of the Annuity, you must use the appropriate Time Value of Money Formula provided below: Time Value of Money Formulas: - Future Value of a single sum FV=PV(1+i)n - Present Value of a single sum PV=FV(1+i) - Future Value of an ordinary annuity FVon=A(((1+i)n1)/i) - Present Value of an ordinary annuity PVOA=A((1(1/(1+i)n))/i)) - Present Value of an annuity due PVAD=A(1+((11/(1+i)n1)/i)) - Present Value of perpetual Annuity PVpA=A/i Fundamental Variables - i-Rate - n-Number of time periods - FV-Future value - PV-Present value - A-Annuity
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