Financial
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part_d.xlsxAmortization Schedule
| Module 05 Written Assignment - Construction of an Amortization Schedule | ||||||
| Complete items a through d below related to the mortgage information provided. | ||||||
| You plan to purchase a $750,000 home using a 30-year mortgage obtained from a local commercial bank. | ||||||
| The mortgage rate offered is 5.25 percent and requires a 20 percent down payment. | ||||||
| a. | What are the monthly payments on the mortgage? | |||||
| b. | Construct the amortization schedule for the first 10 payments. | |||||
| Month | Beginning Loan Balance | Payment | Interest | Principal | Ending Loan Balance | |
| 1 | ||||||
| 2 | ||||||
| 3 | ||||||
| 4 | ||||||
| 5 | ||||||
| 6 | ||||||
| 7 | ||||||
| 8 | ||||||
| 9 | ||||||
| 10 | ||||||
| c. | If the rate offered was 7.50 percent, what would the monthly payments be? | |||||
| d. | If a 15-year mortgage with a 4.50 percent rate and 20 percent down payment was obtained for the purchase, what would the monthly payments be? | |||||
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