Use a spreadsheet software (for example, MS Excel), construct an amortization table for the following mortgage. In the amortization table, provide all the information listed below. (Assuming interest is compounded monthly and payments are due at the end of the month).
For a 15-year variable-rate-level-payment mortgage (VRM) of $200,000 with the
following mortgage rates:
Year 1-3: 5%, Year 4-7: 6%, Year 8-11: 8%, Year 12-15: 9%, compute and illustrate the following in an amortization table:
? Monthly Payment of the mortgage.
? Mortgage Balance Remaining at the end of each month (Total 180 months).
? Principal Repayment for each month.
? Interest Expenses for each month, each year, and the life of the loan.
For a VRM, how you should go about is as follows -
1. Start with the principal and the tenure ( the total tenure - 180 months here) and the rate for the initial period. Calculate the equated monthly installment (EMI) ( u can use the ...
The solution explains how to construct an amortization table for a variable rate mortgage loan in excel