Mortgage Analysis
Not what you're looking for?
Please show work in Excel along with a detailed written explanation of your findings typed in word format.
Mini-Project 1: Mortgage Loan Analysis: Mr. Johnson plans to buy a new house at Sugar Land in June 2010. The sale price of the house is $580,000. He plans to pay 20% down payments and borrow additional 80% from Wells Fargo Bank with a 30-year, 5.25% fixed-rate mortgage loan. He is expected to pay an equal MONTHLY payment starting from July 2010 for a total of 30 years.
(1) Calculate the required monthly payment for Mr. Johnson.
(2) Construct 2010~2011 amortization table (18 months) for Mr. Johnson.
(1) Mr. Johnson should prepare his 2010 tax filings in early 2011. Please compute the total mortgage interest payments which he can use for his 2010 tax deductions.
Purchase this Solution
Solution Summary
This solution illustrates how to compute the monthly payment on a mortgage, construct an amortization schedule, and compute the income tax deduction for the mortgage interest.
Solution Preview
Please see the attached Excel 97-2003 spreadsheet.
Findings:
Mr. Johnson will borrow $464,000. At a monthly interest ...
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Operations Management
This quiz tests a student's knowledge about Operations Management
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.