Mortgage Amortization Schedule
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1. Excel: Complete the amortization table provided by setting the appropriate values for a $165,000, 30-year mortgage at 4.5% interest and using Excel's autofill (drag) feature to fill in the cells to the end of the mortgage period. Use this to answer the following:
a. How much of the first payment goes towards the principal? How much goes toward the interest?
b. How much of the last payment goes towards the principal? How much goes toward the interest?
c. Find the total interest paid by the end of the mortgage.
d. How much will be owed on the mortgage after making payments for 10 years (hint this is 120 months)?
e. How much interest has been paid total on the mortgage at the end of 10 years?
f. How many months will it take to pay at least half of the principal?
2. Change the spreadsheet from the last question so that the mortgage is for 15 years rather than 30 years.
a. Find the total interest paid by the end of the mortgage.
b. What are some advantages and disadvantages of getting a shorter-term mortgage?
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All calculations and formulas used for the Amortization Schedule are in the Excel file. The Word file contains the solutions to each question.
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1. Excel: Complete the amortization table provided by setting the appropriate values for a $165,000, 30-year mortgage at 4.5% interest and using Excel's autofill (drag) feature to fill in the cells to the end of the mortgage period. Use this to answer the following:
a. How much of the first payment goes towards the principal? How much goes toward the interest?
The answers are in the Month 1 row. $217.28 of the first payment goes towards the principal.
$618.75 of the first payment goes towards the principal.
b. How much of the last payment goes towards the ...
Education
- MSc, California State Polytechnic University, Pomona
- MBA, University of California, Riverside
- BSc, California State Polytechnic University, Pomona
- BSc, California State Polytechnic University, Pomona
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