(a)Begin by filling down the values 1 to 360 in your Month column. You purchase a home for $115000 but you pay $23000 down in cash and finance the balance for 30 years at 6.5% compounded monthly. Your monthly payments are $581.51. Set up the spreadsheet to display the outstanding balance for each month for 30 years. As a checkpoint, you should get $91147.66 just after your 10th payment. Hint: When doing your interest column, remember to use the format =P*R*T, with time being (1/12) since it is monthly. How much is still owed on the loan just after 110 payments. $ Just after the 110 payment, how much has been paid in interest? $ What is the owner's equity just after the 110 payment? $ Find the size of the last payment. $ How much interest in total did you spend on the house? $ For the 30 year option, at which payment does more of the payment go to principal than to interest?

(a)Begin by filling down the values 1 to 360 in your Month column. You purchase a home for $115000 but you pay $23000 down in cash and finance the balance for 30 years at 6.5% compounded monthly. Your monthly payments are $581.51. Set up the spreadsheet to display the outstanding balance for each month for 30 years. As a checkpoint, you should get $91147.66 just after your 10th payment. Hint: When doing your interest column, remember to use the format =PRT, with time being (1/12) since it is monthly. How much is still owed on the loan just after 110 payments. $ Just after the 110 payment, how much has been paid in interest? $ What is the owner's equity just after the 110 payment? $ Find the size of the last payment. $ How much interest in total did you spend on the house? $ For the 30 year option, at which payment does more of the payment go to principal than to interest?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 7CE

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