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Monthly amortization schedule. Sherry and Sam want to purchase a condo at the coast. They will spend $610,000 on the condo and are taking out a loan for the condo for twenty years at 7.4% interest. a. What is the monthly payment on the mortgage? Construct the amortization of the loan for the twenty years in a spreadsheet to show the interest cost, the principal reduction, and the ending balance each month. b. Then change the amortization to reflect that after ten years, Sherry and Sam will increase their monthly payment to $7,800 per month. When will they fully repay the mortgage with this increased payment if they apply all the extra dollars above the original payment to the principal? a. What is the monthly payment on the mortgage? The monthly interest rate on the mortgage is 0.6166667 %. (Round to seven decimal places.) The monthly payment on the mortgage is $4876.89. (Round to the nearest cent.) Construct the amortization of the loan for the twenty years in a spreadsheet to show the interest cost, the principal reduction, and the ending balance each month. Complete the amortization schedule below to show the interest cost, the principal reduction, and the ending balance for month 125 of the loan: (Round to the nearest cent.) Month 125 Loan Amount Interest Rate Years for Loan $ 610,000 20 Interest Expense $ Beginning Balance $ - 7.4% Monthly Payment $ $ Principal Reduction Extra Principal $ Ending Balance

Monthly amortization schedule. Sherry and Sam want to purchase a condo at the coast. They will spend $610,000 on the condo and are taking out a loan for the condo for twenty years at 7.4% interest. a. What is the monthly payment on the mortgage? Construct the amortization of the loan for the twenty years in a spreadsheet to show the interest cost, the principal reduction, and the ending balance each month. b. Then change the amortization to reflect that after ten years, Sherry and Sam will increase their monthly payment to $7,800 per month. When will they fully repay the mortgage with this increased payment if they apply all the extra dollars above the original payment to the principal? a. What is the monthly payment on the mortgage? The monthly interest rate on the mortgage is 0.6166667 %. (Round to seven decimal places.) The monthly payment on the mortgage is $4876.89. (Round to the nearest cent.) Construct the amortization of the loan for the twenty years in a spreadsheet to show the interest cost, the principal reduction, and the ending balance each month. Complete the amortization schedule below to show the interest cost, the principal reduction, and the ending balance for month 125 of the loan: (Round to the nearest cent.) Month 125 Loan Amount Interest Rate Years for Loan $ 610,000 20 Interest Expense $ Beginning Balance $ - 7.4% Monthly Payment $ $ Principal Reduction Extra Principal $ Ending Balance

Excel Applications for Accounting Principles
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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Please help me with parts a and b

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Monthly amortization schedule. Sherry and Sam want to purchase a condo at the coast. They will spend $610,000 on the condo and are taking out a loan for the condo for twenty years at 7.4% interest. a. What is the monthly payment on the mortgage? Construct the amortization of the loan for the twenty years in a spreadsheet to show the interest cost, the principal reduction, and the ending balance each month. b. Then change the amortization to reflect that after ten years, Sherry and Sam will increase their monthly payment to $7,800 per month. When will they fully repay the mortgage with this increased payment if they apply all the extra dollars above the original payment to the principal? a. What is the monthly payment on the mortgage? The monthly interest rate on the mortgage is 0.6166667 %. (Round to seven decimal places.) The monthly payment on the mortgage is $4876.89. (Round to the nearest cent.) Construct the amortization of the loan for the twenty years in a spreadsheet to show the interest cost, the principal reduction, and the ending balance each month. Complete the amortization schedule below to show the interest cost, the principal reduction, and the ending balance for month 125 of the loan: (Round to the nearest cent.) Month 125 Loan Amount $ $ 610,000 Beginning Balance Interest Rate Years for Loan 20 Interest Expense $ ← 7.4% Monthly Payment $ $ Principal Reduction $ Extra Principal $ Ending Balance
Transcribed Image Text:Monthly amortization schedule. Sherry and Sam want to purchase a condo at the coast. They will spend $610,000 on the condo and are taking out a loan for the condo for twenty years at 7.4% interest. a. What is the monthly payment on the mortgage? Construct the amortization of the loan for the twenty years in a spreadsheet to show the interest cost, the principal reduction, and the ending balance each month. b. Then change the amortization to reflect that after ten years, Sherry and Sam will increase their monthly payment to $7,800 per month. When will they fully repay the mortgage with this increased payment if they apply all the extra dollars above the original payment to the principal? a. What is the monthly payment on the mortgage? The monthly interest rate on the mortgage is 0.6166667 %. (Round to seven decimal places.) The monthly payment on the mortgage is $4876.89. (Round to the nearest cent.) Construct the amortization of the loan for the twenty years in a spreadsheet to show the interest cost, the principal reduction, and the ending balance each month. Complete the amortization schedule below to show the interest cost, the principal reduction, and the ending balance for month 125 of the loan: (Round to the nearest cent.) Month 125 Loan Amount $ $ 610,000 Beginning Balance Interest Rate Years for Loan 20 Interest Expense $ ← 7.4% Monthly Payment $ $ Principal Reduction $ Extra Principal $ Ending Balance
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