AMORTIZATION (FINANCE)---$25---FINAL PRICE -NO NEGOTIATIONS
vogish
amortization.docxAmortization
Part One: Quantitative Exercises
1. Determine the present value solutions to period, interest, and payments.
2. Calculate the future value solutions for period, interest, and payments.
3. Determine the answers relating to annuity, perpetuities, and annuity due problems.
USE THE TEMPLTE PROVIDED IN THIS ATTACHMENT ONLY !!!!!
Complete the assignment using this template. You may use the formulas in Microsoft Excel and/or a financial calculator. Be sure to summarize your results with embedded formulas in the spreadsheet, using the mathematical equations, or the steps taken on the financial calculator
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Part Two;
Amortization
Based on your income, you may spend 28% of your monthly income on housing, and 10% on a car loan. You are to put a 3% down payment on the house and a 10% down payment on the car.
Required:
Using Microsoft Excel, address the following issues:
1. What is the maximum car payment and mortgage payment you can afford with the following conditions: your monthly household income, 10% for the car payment, and 28% for the mortgage payments?
2. Assume a 10% down payment on the car and a 3% down payment on the house. Also, assume that you can get financing for the car at 7% for 60 months, and the house can be financed at 5% for 30 years. How much could you spend on the car and the house? You must submit your calculations in a Microsoft Excel document showing how answers were reached.
3. Create a complete amortization schedule for the car, using the information in questions 1 and 2.
Discuss the distributions of principal, interest and the balance over the life of the loan.
