John Doe has just been offered a home loan towards purchase of house that is being sold for $230,000. He will be required to make a 15% down payment, as well as mortgage processing fees and closing costs of $3,000. The loan has to be paid off in monthly payments over a 30-year period at a fixed interest rate of 4% per year compounded monthly. He will also be required to pay an additional $92 per month as mortgage insurance. Using Excel, answer the following questions: (a) The monthly mortgage payment is $ (enter as a positive number to the nearest dollar) (b) The total monthly payment is $. (enter as a positive number to the nearest dollar) (c) The nominal APR is % (to the nearest 2 decimal places) % (to the nearest 2 decimal places) (d) Over the 30-year period, the total amount of interest paid on the loan is $ The effective APR is (enter as a positive number to the nearest dollar). (e) The interest amount in the month 54 payment is $ (enter as a positive number to the nearest dollar) The principal amount in the month 54 payment is $ (enter as a positive number to the nearest dollar) (f) The balance on the loan immediately after making the payment at the end of month 54 is $ (enter as a positive number to the nearest dollar)
John Doe has just been offered a home loan towards purchase of house that is being sold for $230,000. He will be required to make a 15% down payment, as well as mortgage processing fees and closing costs of $3,000. The loan has to be paid off in monthly payments over a 30-year period at a fixed interest rate of 4% per year compounded monthly. He will also be required to pay an additional $92 per month as mortgage insurance. Using Excel, answer the following questions: (a) The monthly mortgage payment is $ (enter as a positive number to the nearest dollar) (b) The total monthly payment is $. (enter as a positive number to the nearest dollar) (c) The nominal APR is % (to the nearest 2 decimal places) % (to the nearest 2 decimal places) (d) Over the 30-year period, the total amount of interest paid on the loan is $ The effective APR is (enter as a positive number to the nearest dollar). (e) The interest amount in the month 54 payment is $ (enter as a positive number to the nearest dollar) The principal amount in the month 54 payment is $ (enter as a positive number to the nearest dollar) (f) The balance on the loan immediately after making the payment at the end of month 54 is $ (enter as a positive number to the nearest dollar)
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 27M
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