THE PICTURE IS THE EXCEL TEMPLATE YOU MUST FILL OUT Suppose that you borrowed $25,000 student loans from Sallie Mae to attend UM - Dearborn. Once you graduate, you are required to start paying your loan and interest. The APR for your loan is 5.54%. Each month you will have to make interest payment and principal repayment. Suppose that you can choose the following two repayment plans: Standard repayment plan: if you choose this plan, you will have to pay off your loan in 10 years with the same amount of payment each month. Fixed extended repayment plan: if you choose this plan, you will be allowed to pay off your loan in 25 years with the same amount of payment each month. 1. Please use Excel to work on the following questions: How much should you pay each month for these two plans?• Set up the loan amortization tables for these two plans. How much interest will you pay in total when you pay off your loan for these two plans? mortization Schedule for your Student Loan (Standard Repayment Plan) Student loan Interest rate Year Loan 2 onth (2) Beginning of Month Loan Balance $250,000.00 BN $25,000 Monthly payment 5.54% Term of loan: Table 1: Summary of the Payments based on Two Repayment Plans Pepayment Plan 131 Monthly gyment 10-Year Loan 25-Year Loan Monthly Payment -$1,387.15 -$1,385.00 (4) ($1,387.15) 120 Interest Total Interest Payment 151 Scheduled Principal Repayment Principal Repayment. (6) End of Month Loan Balance Amortization Schedule for your Student Loan (Extended Repayment Plan) $25,000 Menthly payment A www 5.54% Term of loan: 300 25 Year Loan (1) Month Student ban: Interest rate: (8) (21 Beginning of Month Monthly Loan Balance Payment Interest (5) (6) Scheduled P End of Month Repayment Loan Balance
THE PICTURE IS THE EXCEL TEMPLATE YOU MUST FILL OUT Suppose that you borrowed $25,000 student loans from Sallie Mae to attend UM - Dearborn. Once you graduate, you are required to start paying your loan and interest. The APR for your loan is 5.54%. Each month you will have to make interest payment and principal repayment. Suppose that you can choose the following two repayment plans: Standard repayment plan: if you choose this plan, you will have to pay off your loan in 10 years with the same amount of payment each month. Fixed extended repayment plan: if you choose this plan, you will be allowed to pay off your loan in 25 years with the same amount of payment each month. 1. Please use Excel to work on the following questions: How much should you pay each month for these two plans?• Set up the loan amortization tables for these two plans. How much interest will you pay in total when you pay off your loan for these two plans? mortization Schedule for your Student Loan (Standard Repayment Plan) Student loan Interest rate Year Loan 2 onth (2) Beginning of Month Loan Balance $250,000.00 BN $25,000 Monthly payment 5.54% Term of loan: Table 1: Summary of the Payments based on Two Repayment Plans Pepayment Plan 131 Monthly gyment 10-Year Loan 25-Year Loan Monthly Payment -$1,387.15 -$1,385.00 (4) ($1,387.15) 120 Interest Total Interest Payment 151 Scheduled Principal Repayment Principal Repayment. (6) End of Month Loan Balance Amortization Schedule for your Student Loan (Extended Repayment Plan) $25,000 Menthly payment A www 5.54% Term of loan: 300 25 Year Loan (1) Month Student ban: Interest rate: (8) (21 Beginning of Month Monthly Loan Balance Payment Interest (5) (6) Scheduled P End of Month Repayment Loan Balance
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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