Question

X == General Times New Roman - 14 - AA BIU - OA . Paste Wrap Text Merge & Center - EE $ -% Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font Alignment GH Problem 5-21 You have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800.000. The mortgage is currently exactly 1872 years old, and you have just made a payment. If the interest rate on the mortgage is 5.25% (APR), how much cash will you have from the sale once you pay off the mortgage? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copypaste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that fiction. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Ghen Data section. S 1.000.000 Sale price 5-21 * Type here to search

plz do it through excel, thank you

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

А в Sale price Initial balance Number of years Periods per year Periods into the loan APR 1,000,000 800,000 30 12 222 5.25% $ Discount rate Monthly payment Periods remaining PV of mortgage Cash from sale 0.4375% 4,417.63 138 456,931.41 543,068.59 $ $

Cell reference -

A B 1000000 800000 Sale price Initial balance Number of years Periods per year Periods into the loan 2 30 12 =18.5*12 0.0525 APR Discount rate Monthly payment Periods remaining PV of mortgage Cash from sale =D11/12 =PMT(D13,D8*D9,-D7,,0) =D8*D9-D10 =PV(D13,D15,-D14,,0) =D6-D16

Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.