Question

Section 4 - Mortgage Calculation Instructions You Have Decided to use a 15 year Amortization for your Mortgage. Use this information to find the MONTHLY mortgage PAYMENT using the mortgage amount from previous section and a rate of 3.17%. You must also determine the amount of INTEREST, PRINCIPAL and BALANCE owing for the mortgage after 4 Years and 1 Months. Input all the TVM variables and answers into the fields below. Amortization Mortgage Amount From Previous Question $278710.23 15 Years Wc/y Present Value of Loan (PV ) PI Months P2 Months Number of Periods (N) Monthly Payment (PMT) BALANCE OWING (BAL) Mortgage Rate As % (V/Y) Value At End of Loan (FV) PRINCIPAL PAID (PRN) Section Value: 7 INTEREST PAID (INT) Submit Answers

Answer 1

Section 4:

Mortgage amount 278710.23 Amortization period (years) 15 PAY P2 months CNY 1 Present value of loan (PV) 278710.23 P1 months 48 | Number of periods (N) 180 Monthly payment (PMT) Balance owed 1947.59 255134.43 Mortgage rate as % (1/Y) 3.17% Value at end of loan (FV) 0.00 Principal paid 63278.96 Interest paid 32153.01

Formulas:

175 Amortization period (years) 15 CNY Present value of loan (PV) P1 months P2 months FA178 |=4*12 176 177 Mortgage amount 178 278710.23 179 180 P/Y 181 12 11 182 183 Number of periods (N) 184 =D178*12 185 186 Mortgage rate as % (I/Y) 187 0.0317 188 189 190 Monthly payment (PMT) =PMT(A187/12,4184,-C181) Balance owed =C184*(A184-D181-E181) Value at end of loan (FV) |--FV(A187/12, A184,C184,-4178) Principal paid =A178-PV(A187/A181, (A184-D181-E181),-C184) Interest paid =(C184*(D181+E181))-0187

Section 5:

Mortgage amount 278710.23 Amortization period (years) 20 P/Y 12 CNY T1 T Present value of loan (PV) 278710.23T P1 months 36 P2 months 1 Number of periods (N) 240 Monthly payment (PMT) 1865.64 Balance owed 378724.67 Mortgage rate as % (1/4) 5.17% Value at end of loan (FV) 0.00 Principal paid 26607.13 Interest paid 42421.51

Formulas:

AB 175 176 177 Mortgage amount 178 278710.23 Amortization period (years) 20 179 Present value of loan (PV) P1 months P2 months |=A178 =3*12 180 PNY 181 12 182 183 Number of periods (N) 184 =D178*12 Monthly payment (PMT) =PMT(A187/12,4184,-C181) Balance owed =C184*(A184-0181-E181) 185 186 Mortgage rate as % (1/1) 187 -3.17%+2% 188 Value at end of loan (FV) =-FV(A187/12, A184,C184,-A178) Principal paid =A178-PV(A187/A181,(A184-D181-E181),-C184) 189 190 Interest paid =(C184*(D181+E181))-D187

For the next part, the numbers have been taken from Section 4:

Mortgage rate as % (1/) Present value of loan (PV) 3.1700% [ 278710.23 Value at end of loan (FV) 0.00 Question 2 (weekly): 1 Question 1 (bi-weekly): PAY 26 CNY |PY CAY 52 Number of periods (N) 390 Number of periods (N) 780 Monthly payment (PMT) -898.39 Monthly payment (PMT) -449.09

Formulas:

e at end of loan esent value of loan (P 278710.23 175 176 177 Mortgage rate as % (1/Y) 178 =3.17% 179 180 Question 1 (bi-weekly): 181 P/Y 182 =52/2 183 184 Number of periods (N) 185 =15*G182 186 187 Monthly payment (PMT) 188 =PMT(G178/6182,6185,1178) 1 Question 2 (weekly): |PM =52 Number of periods (N) =15*J182 Monthly payment (PMT) =PMT(G178/1182,185,1178)

Note: Negative/positive signs have not been mentioned for calculated values in the question, so please check the signs while entering the value.