You have found your desired house for $500,000 and you like to purchase it. You approached a mortgage company for loan. The company asked you that if you pay 20% down, you are able to get a 30 years loan for the remaining balance with interest rate of 4.75% with zero points. You accepted the deal. Assuming the mortgage is payable at the end of each month.

Required: Develop an excel spread sheet and:

On the first couple of lines of your worksheet enter all the necessary information. Then Use these information to apply for the following requirements. Make sure to avoid typing in any unnecessary information. You need to use appropriate cells.

1) Determine your monthly mortgage payment

2) Prepare a worksheet as follows:

Period Monthly Payment monthly interest Principle Balance

0

1

2

3

.

.

360

3) What is the total amount of interest that you have to pay over 30 years?