You are considering buying a new home and are planning to take out a 30-year, $300,000 mortgage. You are told that the interest rate on your loan will be 3%. You want to figure out how much you will have to pay on the mortgage each month. To analyze your potential loan, you have decided to use Microsoft Excel to calculate the monthly payments. To earn full credit your spreadsheet must contain the following elements: Calculate the required monthly payment using a built-in Excel function. Reference the interest rate via a cell name rather than a cell location Build a 360-month amortization table including the outstanding loan balance at the end of each month. Suppose instead of paying the required monthly payment, you decide to pay an extra $250 per month. How much sooner will you be able to pay off your loan?
You are considering buying a new home and are planning to take out a 30-year, $300,000 mortgage. You are told that the interest rate on your loan will be 3%. You want to figure out how much you will have to pay on the mortgage each month. To analyze your potential loan, you have decided to use Microsoft Excel to calculate the monthly payments. To earn full credit your spreadsheet must contain the following elements: Calculate the required monthly payment using a built-in Excel function. Reference the interest rate via a cell name rather than a cell location Build a 360-month amortization table including the outstanding loan balance at the end of each month. Suppose instead of paying the required monthly payment, you decide to pay an extra $250 per month. How much sooner will you be able to pay off your loan?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You are considering buying a new home and are planning to take out a 30-year, $300,000 mortgage. You are told that the interest rate on your loan will be 3%. You want to figure out how much you will have to pay on the mortgage each month.
To analyze your potential loan, you have decided to use Microsoft Excel to calculate the monthly payments. To earn full credit your spreadsheet must contain the following elements:
- Calculate the required monthly payment using a built-in Excel function.
- Reference the interest rate via a cell name rather than a cell location
- Build a 360-month amortization table including the outstanding loan balance at the end of each month.
- Suppose instead of paying the required monthly payment, you decide to pay an extra $250 per month. How much sooner will you be able to pay off your loan?
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