A loan of $370,000 is amortized over 30 years with payments at the end of each month and an interest rate of 6.9%, compounded monthly. Use Excel to create an amortization table showing, for each of the 360 payments, the beginning balance, the interest owed, the principal, the payment amount, and the ending balance. Answer the following, rounding to the nearest penny. a) Find the amount of each payment. $ b) Find the total amount of interest paid during the first 15 payments. $ c) Find the total amount of interest paid over the life of the loan. $ d) Find the total of all payments made over 30 years. $ Suppose that payment number 3 is skipped and the interest owed for month 3 is added to the balance. Payments then resume as usual for the remainder of the 30 years. e) Find the balance owing at the end of month 3. $ f) Find the balance remaining after the 360th payment. $
A loan of $370,000 is amortized over 30 years with payments at the end of each month and an interest rate of 6.9%, compounded monthly. Use Excel to create an amortization table showing, for each of the 360 payments, the beginning balance, the interest owed, the principal, the payment amount, and the ending balance. Answer the following, rounding to the nearest penny. a) Find the amount of each payment. $ b) Find the total amount of interest paid during the first 15 payments. $ c) Find the total amount of interest paid over the life of the loan. $ d) Find the total of all payments made over 30 years. $ Suppose that payment number 3 is skipped and the interest owed for month 3 is added to the balance. Payments then resume as usual for the remainder of the 30 years. e) Find the balance owing at the end of month 3. $ f) Find the balance remaining after the 360th payment. $
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 13P
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As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts asked).
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Answering 1st question's 3 sub-parts.
Data given:
Loan amount=$ 370,000
n=30 years
r=6.9% compounded monthly
Working Note#1
Calculation of nper
nper=30 years *12=360
Working Note#2
Monthly rate=6.9%/12=0. 575%
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