Given the following information: Interest Rate (yearly): 3.5% Mortgage: $250,000 Term (in months): 360 Start...
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Accounting
Given the following information:
Interest Rate (yearly): 3.5%
Mortgage: $250,000
Term (in months): 360
Start Date: October 1, 2019
Yearly Bonus: $10,000
Formulas to incorporate:
PMT
EDATE
SUM
Other Notes:
Do amortization monthly.
Note that the interest rate is yearly and that your amortization table is monthly.
Anchoring cells will make it faster to develop your spreadsheet.
Youll want to set up your spreadsheet to have the following columns: Starting Balance, Interest Accrued, Payment, Principal, Ending Balance, Cumulative Interest, Cumulative Principal.
Case:
What is the minimum payment each month?
Scenarios (complete each scenario on a separate tab and label each tab appropriately):
Pay the minimum required.
Pay an extra $250/month. When will you have the loan paid off by?
Pay an extra $250/month and make a larger payment (equal to 50% of your year end bonus) each December. When will you have the loan paid off by?
Answer & Explanation
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