I need the solution for question # 9 8) Using excel, build a monthly amortizatio

Question

I need the solution for question # 9

8) Using excel, build a monthly amortization table for a 30-year mortgage on a $350,000 home, no money down. Use 7% as the yearly interest on the loan.

9) Using the amortization table you built for Question 8, answer the following questions.

a. How much money will you still owe on the loan after making one full year of payments?

b. How much money will you still owe on the loan after making 10 full years of payments?

c. If you want to refinance after 15 years of making payments, how much financing would you need to secure from your bank to do so?

d. How much money can you expect to pay in interests alone during the 30 year life of the mortgage?

Explanation / Answer

Answer to Question 8 Prinicipal amount of the loan $3,50,000 Interest rate per annum 7% Periods per annum 12 Interest rate per period 0.58% No.of installments 360 Instalment no. Opening EMI Interest Principal repayment Closing 1 $3,50,000 $2,329 $2,042 $287 $3,49,713 2 $3,49,713 $2,329 $2,040 $289 $3,49,425 3 $3,49,425 $2,329 $2,038 $290 $3,49,134 4 $3,49,134 $2,329 $2,037 $292 $3,48,842 5 $3,48,842 $2,329 $2,035 $294 $3,48,549 6 $3,48,549 $2,329 $2,033 $295 $3,48,253 7 $3,48,253 $2,329 $2,031 $297 $3,47,956 8 $3,47,956 $2,329 $2,030 $299 $3,47,657 9 $3,47,657 $2,329 $2,028 $301 $3,47,357 10 $3,47,357 $2,329 $2,026 $302 $3,47,055 11 $3,47,055 $2,329 $2,024 $304 $3,46,751 12 $3,46,751 $2,329 $2,023 $306 $3,46,445 Amortisation schedule is build only for 12 months due to limitation in posting entire schedule Answers to Question 9 a $346445 money still you owe on the loan after making one full year of payments b $300343 money still you owe on the loan after making 10 full years of payments c $259066 financing needed from bank after 15 years. d Interest payment during 30 years of period = $488281

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