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Your have just sold your house for $1,050,000 in cash. Your mortgage was originally a​ 30-year...

Your have just sold your house for $1,050,000 in cash. Your mortgage was originally a​ 30-year mortgage with monthly payments and an initial balance of $750,000. The mortgage is currently exactly 18.5 years​ old, and you have just made a payment. If the interest rate on the mortgage is 7.75% (APR with​ semi-annual compounding), how much cash will you have from the sale once you pay off the​ mortgage?

a) The discount rate for the mortgage is___?

b) Mortgage payments are ___?

c) Compute the remaning balance on the mortgage

d) Find the cash that remains after the mortgage is paid off and the house is sold.

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PV, FV, ANNUITY Microsoft Excel Home nert Page Layout Formulas Data Review View dd-Ins s Cut ta copy. Σ AutoSum ー E ゴWrap Text B า 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 conditional Format . Cell Insert Delete Format Sort &Find & Format Painter Formatting as Table Styles2 Clear Clipboard Alignment Number Cells Edting AE188 AB AC AD AE AF LIFE LIFE COMPLETED LIFE REMAINING RATE EFFECTIVE RATE EFFECTIVE RATE- 170 172 173 174 175 176 30 YEARS 18.5 YEARS 11.5 YEARS 7 75% (1+0.0775/2)A2-1 7.90% DISCOUNT RATE 7.90% 178 179 180 181 182 183 184 185 186 187 188 b) $5,451.04 EXCEL-PMT(7.90%/12,30* 12,-750000) PMT= (MORTAGAGE PAYMENTS) c) PV OF ALL INSTALMENTS OUTSTANDING= $ 4,93,217.94 EXCEL-PV(7.9%/12, 11.5* 12,-5451.04) (REMAINING BALANCE ON MORTAGAGE) d) CASH AVAILABLE AFTER PAYING OUTSTANDING LOAN = SALE VALUE OF HOUSE PV OF ALL INSTALMENTS OUTSTANDING- 10,50,000.00 4,93,217.94 5,56,782.06 BOX CALCULATOR | LOAN OPTIONS fv. ann CAP STRU VALUE DILUTION. DOLLAR COST AVG MORTGAGE / EXPO Sheet1 . Sheet2. 一시 130% - 福 22-10-2018

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