Required information [The following information applies to the questions displayed below.) NOTE: Throughout this lab, every time a screenshot is requested, use your computer's screenshot tool, and paste each screenshot to the same Word document. Label each screenshot in accordance to what is noted in the lab. This document with all of the screenshots included should be uploaded through Connect as a Word or PDF document when you have reached the final step of the lab. In this lab, you will: Required: 1. Calculate the monthly payment for a 30-year mortgage loan. 2. Calculate the amount of interest that you'd pay for a 30-year mortgage loan. Ask the Question: How much interest do you pay over the life of a 30-year mortgage? Master the Data: There is no data file for this lab. We will make the needed calculations and input the data as we go. To compute the mortgage payments, we'll need to know a few things: 1. The size of the mortgage loan 2. The interest rate 3. The length of the loan (number of months) Let's suppose you would like to buy a home for $250,000. But like most U.S. citizens, you don't have enough cash on hand to pay for the full house. But we're in luck! Signature Bank has agreed to offer you a 30-year mortgage loan, but requires that you pay 20 percent down ($50,000 = 20% of $250,000) to qualify for their mortgage loan of $200,000 in this way: $250,000 Cost of home 50,000 Required 20% down payment ($50,000 = 20% of $250,000) (The cash you need to have available to pay when closing on the home) $200,000 Amount of the bank loan Software needed Excel Screen capture tool (Windows: Snipping Tool; Mac: Cmd+Shift+4) Perform the Analysis: Refer to Lab 1-3 in the text for instructions and steps for each of the lab parts. Share the Story: Accountants need to know how much of each monthly mortgage (or bond) payment goes toward interest. Upload the Word or PDF document containing your Lab screenshots using the button below. Take a screenshot of the top 20 lines of your 360-month amortization schedule and label it "Lab 1-3 Submission". Required: 1. What is the amount of interest paid in monthly payment number 25? $972.43 $973.56 $975.80 $974.68 2. What is the amount that goes toward paying down principal in monthly payment number 20? $217.80 $218.89 $980.21 $219.99 3. What is the amount of ending principal after the 359th monthly payment? $1,193.14 $0 $5.97 $2,380.33 4. What is the amount of ending principal after the 360th monthly payment? $5.97 $1,193.14 $2,380.33 $0 5. What would be the monthly payment for a $200,000 mortgage loan for 360 months, and at 7% annual interest? $1,330.60 $14,000.00 $1,199.10 $1,064.48
