Question

looking fot help with this please include excel i instrcutions if needed.

3. A midcareer professional couple is interested in purchasing a new home costing $750,000. They can afford a 20 percent, or $150,000 down payment, leaving $600,000 to be borrowed. They prefer to have a conventional loan, and one lender has offered a 30-year loan at 6.75%. a. What is the amount of the monthly payment? (Note: Use 6 decimals for the value of the factor) b. If, immediately after making the one hundred twentieth payment (10 years), the professional couple decides to sell the house. Compute the unpaid balance on the loan. (Note: Use 6 digits for the value of the factors). C. If the home is sold for $850,000 out of which the couple pays realtor fees of $64,000, How much money did they make on the house in the 10 years that they lived in the house?

Answer 1

1.

formula to calculate EMI:

(1+r)" E = P.”. ((1+r)" – 1)

where

E is EMI

P is Principal Loan Amount

R is rate of interest calculated on monthly basis. (i.e., r = Rate of Annual interest/12/100. If rate of interest is 6.75% per annum, then r = 6.75/12/100=0.005625)

N = 30 year * 12 Months

= 360 Months

Hence;

E = $ 600,000 * 0.005625 * (1+0.005625)^360 / ( (1+0.005625)^360 - 1)

= $ 3,892

2. Unpaid loan amonut after 10 Year is $ 511,806

I 8 Arial V 11.5 VA A == Number , E ab Wrap Text Merge & Center - ste BI U - 1 9. % pboard Font Alignment Numi 1 - X fx 511806 A ear M ON000 N20PRRINRINGSINS Opening Balance 6,00,000 5.93 606 5,86 766 5,79.450 5.71,624 5,63 254 5,54301 5.44,725 5,34 482 5.23,525 5 11,806 4 99,271 4 85 863 471,521 4 56 181 4.39.773 422 222 4.03.449 383.369 361 891 3,38,917 3.14 344 288 060 259.946 229 874 197 709 163 303 126 503 87 139 45 035 EMI*12 - 46 699 46,699 46,699 46,699 46.699 46.699 46.699 46.699 46.699 46.699 46.699 46,699 46,699 46,699 46,699 46.699 46,699 46,699 46.699 46,699 46,699 46,699 46,699 46 699 46.699 46.699 46,699 46,699 46.699 46.699 Interest paid yearly - 40,305 39,859 39,383 38,874 38,329 37 746 37.123 36,456 35,743 34.980 34,164 33,291 32,357 31,359 30.291 29,148 27,926 26,619 25,221 23,726 22 126 20.415 18,585 16.627 14.533 12 294 9,898 7336 4,595 1,664 Principal paid yearly 6,394 6,840 7316 7.825 8,370 8.953 9,576 10 243 10,956 11,719 12535 13.408 14,342 15,340 16,408 17,551 18,773 20,080 21.478 22.974 24,573 26 284 28,114 30,072 32 166 34,405 36.801 39,363 42 104 45,036 Closing Balance 5,93,606 5,86,766 5,79,450 5,71,624 5,63,254 5 54,301 5,44,725 5,34,482 5,23,525 5.11,806 4,99,271 4,85,863 4,71,521 4,56,181 4,39,773 4,22,222 4.03,449 3,83 369 3,61,891 3,38,917 3,14,344 2,88,060 259,946 2.29,874 1,97,709 1,63 303 1.26,503 87,139 45,035 0 Sheet1 Ready Type here to search REDMI NOTE 5 PRO MI DUAL CAMERA 2020/2/12 01:42

3. Sale value is $850,000

Fees paid $64,000

Total EMI Paid in 10 Years = $46,699 * 10Years = $466,990

Down Payment = $150,000

Hence,

Money make = $850,000 - $64,000 - $466,990 - $150,000

=$169,010