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  3. 2. you just took a $315,000, 30-year loan. payment

2. You just took a $315,000, 30-year loan. Payments at the end of each month are...

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Finance

2. You just took a $315,000, 30-year loan. Payments at the endof each month are flat (equal in every month) at an annual interestrate of 3.75 percent.

a)Calculate the monthly payment.

b)Provide the appropriate loan table, showing the breakdown ineach month between principal repayment and interest.

(PLEASE SHOW STEP-BY-STEP EXCEL FORMULA WITH FUNCTIONS)

Answer & Explanation Solved by verified expert
4.3 Ratings (716 Votes)

Annual interest rate = 3.75%
Years 30
No. of payments in a year 12
Total no. of periods30*12= 360
Amount 315000

Formula for monthly payment = PMT(rate per period, no. of periods, amount of loan)

PMT(0.0375/12,360,315000)

Formula for principal payment= PPMT(rate per period, period number, no. of periods, amount of loan)

PPMT(0.0375/12,F22,360,315000)

Formula for interest payment = IPMT(rate per period, period number, no. of periods, amount of loan)

IPMT(0.0375/12,F22,360,315000)

Balance formula = Amount of loan -Principal payment
Payment number Cell refernce no. Payment Principal Interest Balance
1 F22 -$1,458.81 -$474.44 -$984.38 $314,525.56
2 F23 -$1,458.81 -$475.92 -$982.89 $314,049.64
3 F24 -$1,458.81 -$477.41 -$981.41 $313,572.23
4 F25 -$1,458.81 -$478.90 -$979.91 $313,093.33
5 F26 -$1,458.81 -$480.40 -$978.42 $312,612.93
6 F27 -$1,458.81 -$481.90 -$976.92 $312,131.03
7 F28 -$1,458.81 -$483.40 -$975.41 $311,647.63
8 F29 -$1,458.81 -$484.92 -$973.90 $311,162.71
9 F30 -$1,458.81 -$486.43 -$972.38 $310,676.28
10 F31 -$1,458.81 -$487.95 -$970.86 $310,188.33
11 F32 -$1,458.81 -$489.48 -$969.34 $309,698.86
12 F33 -$1,458.81 -$491.01 -$967.81 $309,207.85

So, monthly payment is $1,458.81.

and loan table is abovementioned.
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Transcribed Image Text

2. You just took a $315,000, 30-year loan. Payments at the endof each month are flat (equal in every month) at an annual interestrate of 3.75 percent.a)Calculate the monthly payment.b)Provide the appropriate loan table, showing the breakdown ineach month between principal repayment and interest.(PLEASE SHOW STEP-BY-STEP EXCEL FORMULA WITH FUNCTIONS)

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