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# Amortization and Income Statements

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1. To buy a new house you take out a 25 year mortgage for \$300,000. What will your monthly interest rate payments be if the interest rate on your mortgage is 8 percent?
rate (i) =
number of periods (n)=
present value (PV) =\$300,000
future value (FV) =\$0
type (0 = at end of period) =0
monthly mortgage payment=

2. Prepare a Pro Forma Income Statement
Net Sales =\$2,938 COGS=\$1,598 SG&A=\$475 Depreciation=45 Interest Exp=\$32 Tax=15%

Show in Excel the following:
Net Sales
Cost Of Goods Sold
Gross Profit
Depreciation
Interest Exp
Income Before Taxes
Income Taxes
Net Profit

#### Solution Preview

1.
rate (i) = 8%
number of periods (n) = 25
present value (PV) = \$300,000
future value (FV) = \$0
type (0 = at ...

#### Solution Summary

This response calculates the monthly interest rate payments of a mortgage and provides instructions on how to prepare a pro forma income statement.

\$2.49