(a)Begin by filling down the values 1 to 360 in your Month column. You purchase a home for $115000 but you pay $23000 down in cash and finance the balance for 30 years at 6.5% compounded monthly. Your monthly payments are $581.51. Set up the spreadsheet to display the outstanding balance for each month for 30 years. As a checkpoint, you should get $91147.66 just after your 10th payment. Hint: When doing your interest column, remember to use the format =P*R*T, with time being (1/12) since it is monthly. How much is still owed on the loan just after 110 payments. $ Just after the 110 payment, how much has been paid in interest? $ What is the owner's equity just after the 110 payment? $ Find the size of the last payment. $ How much interest in total did you spend on the house? $ For the 30 year option, at which payment does more of the payment go to principal than to interest?

(a)Begin by filling down the values 1 to 360 in your Month column. You purchase a home for $115000 but you pay $23000 down in cash and finance the balance for 30 years at 6.5% compounded monthly. Your monthly payments are $581.51. Set up the spreadsheet to display the outstanding balance for each month for 30 years. As a checkpoint, you should get $91147.66 just after your 10th payment. Hint: When doing your interest column, remember to use the format =PRT, with time being (1/12) since it is monthly. How much is still owed on the loan just after 110 payments. $ Just after the 110 payment, how much has been paid in interest? $ What is the owner's equity just after the 110 payment? $ Find the size of the last payment. $ How much interest in total did you spend on the house? $ For the 30 year option, at which payment does more of the payment go to principal than to interest?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose you want to have $400,000 for retirement in 10 years. Your account earns 9% interest. Feel free to use the Online Basic Financial Calculator a) How much would you need to deposit in the account each month? S b) How much interest will you earn? S
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Multi Step Applications Solve the following problems. Round your results to the nearest cent as needed. You want to be able to withdraw $1, 500 from your account each month for 20 years after you retire from an account earning 2.25 % interest compounded monthly. How much will need in your retirement account at the beginning of your retirement? In order to achieve this goal, you will make monthly payments and earn 6.75 % interest compounded monthly. If you expect to retire in 15 years, how much should your monthly payments be to reach this goal? TVM Calculator Question Help: D Video e Written Example Submit Question
You have a balance of $8,000 on your credit card. The interest rate is 19% per year. You want to make equal monthly payment for the next 6 years to completely pay off the balance. Assume no other purchases or payments other than your calculated plan. What must be the amount of your monthly payment? Round to the nearest $ and use the $ symbol.
2. Say you purchase a computer for $1300 at 7% interest and want to have it paid off in 48 months. Use the simple interest formula. a) Calculate the monthly payment necessary to pay off the principal and the interest. b) Calculate the APR. Write out the formula first to show your work.
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4. Consider a credit card with a balance of $7000. You wish to pay off the credit card, which has an APR of 17.99%, within 1 year. Calculate the following. Round your answer to the nearest cent, if necessary. a. Find the number of months you will need to pay the credit card if you pay $585 per month. b. Will you meet your goal and have the credit card paid in one year?
a)Upon entering college, you purchase the car of your dreams for $26000. You pay $5200 down and finance the balance for 4 years at 7% compounded monthly. Your monthly payments are $498.09. Set up the spreadsheet to display the outstanding balance for each month for 4 years. As a checkpoint, you should get $16931.98 just after your 10th payment. How much is still owed on the loan just after 30 payments.$ Find the size of the last payment. $ How much interest in total did you spend on the car? $ (b) If you decided to get a 3 year loan instead of a 4 year loan the payments will be $642.25. What will be the total saving in interest from getting a three year loan instead of a 4 year loan?(Note: you do not need a spreadsheet to answer this question.) $ (c) If you decided to get a 5 year loan, the payments will be $411.87. Determine the total amount of interest that will be paid on a 5 year loan $

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