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.
Please see the attached Excel 97-2003 spreadsheet.
Mr. Johnson will borrow $464,000. At a monthly interest ...
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.