Using an Excel spreadsheet , please complete the calculations for this home mortgage loan problem. Initial home
Question:
Using an Excel spreadsheet, please complete the calculations for this home mortgage loan problem.
Initial home mortgage amount borrowed: $245,000.
Annual mortgage loan rate: 5.15%.
Term of the home mortgage loan: 20 years.
Mortgage Payment: To be made on December 31 (i.e., once per year) during each of the 20 years that the mortgage loan is outstanding.
Step One: Calculate the value of the annual mortgage payment and enter that amount here:
$ ______________________
Step Two: Prepare a mortgage loan amortization table in Excel. Your loan amortization table should break each home mortgage payment into its “principal” and “interest” components.
Step Three: Over the 20-year life of the home mortgage loan, list the following values that are paid:
Total interest over the 20-year life of the loan: $_______________.
Total principal over the 20-year life of the loan: $ ______________.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill