In this part of the assignment, you are required to prepare a loan repayment schedule for...
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In this part of the assignment, you are required to prepare a loan repayment schedule for a mortgage loan you borrowed from the bank. The loan is to be repaid by equal month-end repayments starting from the end of the first month. The monthly repayments include both the interest and the principal of the loan (P&I). The term of the loan is n years. Complete the table below showing the variables you need for the loan repayment schedule Student number digit by digit 4 6 3 2 4 631 Number of years you have to repay the loan, n. Number of months you have to repay the loan, nm Nominal annual Interest rate p.a compounded monthly (m) Effective monthly interest rate (i=j_/m) Original loan amount Fixed monthly repayment (P&I) amount DO NOT Round any amounts in the Amortisation Schedule. Use format commands to display as currency. Loan Amortisation Schedule Interest paid Balance at the beginning of month Principal paid Month 1 2 7.00% $927,262 Answer must be positive (greater than 0) Balance at the end of month Based on your amortisation schedule, calculate answers to Q1 to Q7 in the highlighted cells below using excel TVM functions and referencing the relevant cells in worksheet 'Amortisation Schedule'. Answer each question using AT LEAST ONE of Excel's TVM functions from among =PV, =FV, =PMT, =RATE, =NPER, = IPMT, =PPMT, =CUMIPMT, CUMPRINC. Question 5 to Question 9 are new independent scenarios which are not related to each other. For all the questions below, your answer must be positive (greater than 0). Do NOT round your answer (unless required by the questions) but format as dollars and cents or percentages if necessary. Do NOT include any words such as "months" in your answer. Q1 (0.5 02 (0.5 Q3 (0.5 Calculate the amount of principal paid in the month 30. Calculate the total amount of interest paid from the beginning of month 60 to the end of month 90. Calculate the amount of the loan outstanding balance at the end of month 45. Q4 (1 mark) At the end of which month will it be for the loan outstanding balance to be less than 60% of the original loan amount for the first time? Useful clue: Which function gives the number of time periods? Think about the rounding rules for the final answer. Roundup or rounddown? Remember you can check your answer in the amortisation In this part of the assignment, you are required to prepare a loan repayment schedule for a mortgage loan you borrowed from the bank. The loan is to be repaid by equal month-end repayments starting from the end of the first month. The monthly repayments include both the interest and the principal of the loan (P&I). The term of the loan is n years. Complete the table below showing the variables you need for the loan repayment schedule Student number digit by digit 4 6 3 2 4 631 Number of years you have to repay the loan, n. Number of months you have to repay the loan, nm Nominal annual Interest rate p.a compounded monthly (m) Effective monthly interest rate (i=j_/m) Original loan amount Fixed monthly repayment (P&I) amount DO NOT Round any amounts in the Amortisation Schedule. Use format commands to display as currency. Loan Amortisation Schedule Interest paid Balance at the beginning of month Principal paid Month 1 2 7.00% $927,262 Answer must be positive (greater than 0) Balance at the end of month Based on your amortisation schedule, calculate answers to Q1 to Q7 in the highlighted cells below using excel TVM functions and referencing the relevant cells in worksheet 'Amortisation Schedule'. Answer each question using AT LEAST ONE of Excel's TVM functions from among =PV, =FV, =PMT, =RATE, =NPER, = IPMT, =PPMT, =CUMIPMT, CUMPRINC. Question 5 to Question 9 are new independent scenarios which are not related to each other. For all the questions below, your answer must be positive (greater than 0). Do NOT round your answer (unless required by the questions) but format as dollars and cents or percentages if necessary. Do NOT include any words such as "months" in your answer. Q1 (0.5 02 (0.5 Q3 (0.5 Calculate the amount of principal paid in the month 30. Calculate the total amount of interest paid from the beginning of month 60 to the end of month 90. Calculate the amount of the loan outstanding balance at the end of month 45. Q4 (1 mark) At the end of which month will it be for the loan outstanding balance to be less than 60% of the original loan amount for the first time? Useful clue: Which function gives the number of time periods? Think about the rounding rules for the final answer. Roundup or rounddown? Remember you can check your answer in the amortisation
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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