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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
    Selling & Admin Exp
    Interest Exp
    Income Before Taxes
    Income Taxes
    Net Profit

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    Solution Preview

    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.