Term Project Part B

The second part of the project is due on Monday, December 12, 2016 by 11:59 pm and should be uploaded on Bb9.

All solutions should be typed

Include a title page with the title, FINA5311, and Project-Part B, your name

1st Assignment (40 points)

Loan Amortization Problem

Type your full name in the following order

First Middle Last (I will enter my full name)

Number of letters in full name = 11 letters

Now assume that your annual salary = number of letters in your full name x $15,000 and that the bank you want to borrow from, has determined that it will lend you,

loan amount= your annual salary x 2.5=

interest rate = number of letters in your full name x 0.8%

Assume that you will borrow for 30 years and you will make monthly payments at the end of each month.

A)Calculate your monthly payment (Type your calculator inputs, i.e. N=, PV= and so on)

B)Calculate the total interest amount you will pay over the life of the loan

C)Fill in (type) the missing values in the amortization table below based on your payment found in A. Accuracy should be six decimals so use Excel to construct it.

Month	Beginning Balance	Payment	Interest payment	Principal Payment	Ending Balance
13
14
15
16
17

Interest payment = monthly interest rate x beginning balance

Principal payment = payment- interest payment

Ending balance = beginning balance principal payment

Beginning balance for period 1 is the amount borrowed, for all other periods it is the ending balance of the previous period.