You are planning to purchase a condo that costs $480,000 You plan to put 20 down and borrow the remainder Based on your credit score, you believe that you will pay 3 25 on a 30 year mortgage Use function PV to calculate the loan amount given a payment of $1550 per month What is the most that you can borrow (Be sure that PV is the amount you borrow, not the cost of the house ) Use function PMT to calculate your mortgage payment Use function RATE to calculate the interest rate given a payment of $1550 and a loan amount of $384,000 For each scenario, calculate the total interest that you will have paid once the mortgage is paid off (There is not a function for this, enter the formula into the cell ) For each scenario, calculate the total cost of the home purchase (Down payment plus principle (loan amount) plus interest ) (You will have to add some cells for this ) Assume that you plan to pay an extra $300 per month on top of your mortgage payment, calculate how long it will take you to pay off the loan given the higher payment (Use the rate, PMT and PV from 2) Calculate how much interest you will pay in total Compare this to the value that you calculated for 2 D E F 1 0 0329 Given To Find Find the Rate B 1 Base Case 2 rate 0 0329 3 years 5 4 periods per year 12 5 6 7 Find the Loan Amount 8 rate 9 years 10 periods per year 11 rate per period 12 total periods 13 payment per period $400 00 14 loan amount 15 total paid 16 total interest paid 17 18 19 Find the Payment Amount rate years periods per year rate per period total periods payment per period loan amount total paid total interest paid rate years periods per year rate per period total periods payment per period loan amount total paid total interest paid Find the Interest and Time with Additional Payment rate years periods per year rate per period total periods payment per period $0 00 additional payment per period $100 00 total payment per period loan amount $20,000 00 total paid total interest paid $350 00 $20,000 00

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You are planning to purchase a condo that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score,

You are planning to purchase a condo that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.25% on a 30-year mortgage.

Use function PV to calculate the loan amount given a payment of $1550 per month. What is the most that you can borrow? (Be sure that PV is the amount you borrow, not the cost of the house.)
Use function PMT to calculate your mortgage payment.
Use function RATE to calculate the interest rate given a payment of $1550 and a loan amount of $384,000.
For each scenario, calculate the total interest that you will have paid once the mortgage is paid off. (There is not a function for this, enter the formula into the cell.)
For each scenario, calculate the total cost of the home purchase. (Down payment plus principle (loan amount) plus interest.) (You will have to add some cells for this.)
Assume that you plan to pay an extra $300 per month on top of your mortgage payment, calculate how long it will take you to pay off the loan given the higher payment. (Use the rate, PMT and PV from #2). Calculate how much interest you will pay in total. Compare this to the value that you calculated for #2.

D E F 1 0.0329 Given To Find Find the Rate B 1 Base Case 2 rate 0.0329 3 # years 5 4 # periods per year 12 5 6 7 Find the Loan Amount 8 rate 9 # years 10 # periods per year 11 rate per period 12 total periods 13 payment per period $400.00 14 loan amount 15 total paid 16 total interest paid 17 18 19 Find the Payment Amount rate # years # periods per year rate per period total periods payment per period loan amount total paid total interest paid rate # years # periods per year rate per period total periods payment per period loan amount total paid total interest paid Find the Interest and Time with Additional Payment rate # years #periods per year rate per period total periods payment per period $0.00 additional payment per period $100.00 total payment per period loan amount $20,000.00 total paid total interest paid $350.00 $20,000.00