Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 2. you just took a $315,000, 30-year loan. payment

2. You just took a $315,000, 30-year loan. Payments at the end of each month are...

Free

70.2K

Verified Solution

Question

Finance

2. You just took a $315,000, 30-year loan. Payments at the endof each month are flat (equal in every month) at an annual interestrate of 3.75 percent.

a)Calculate the monthly payment.

b)Provide the appropriate loan table, showing the breakdown ineach month between principal repayment and interest.

(PLEASE SHOW STEP-BY-STEP EXCEL FORMULA WITH FUNCTIONS)

Answer & Explanation Solved by verified expert
4.3 Ratings (716 Votes)

Annual interest rate = 3.75%
Years 30
No. of payments in a year 12
Total no. of periods30*12= 360
Amount 315000

Formula for monthly payment = PMT(rate per period, no. of periods, amount of loan)

PMT(0.0375/12,360,315000)

Formula for principal payment= PPMT(rate per period, period number, no. of periods, amount of loan)

PPMT(0.0375/12,F22,360,315000)

Formula for interest payment = IPMT(rate per period, period number, no. of periods, amount of loan)

IPMT(0.0375/12,F22,360,315000)

Balance formula = Amount of loan -Principal payment
Payment number Cell refernce no. Payment Principal Interest Balance
1 F22 -$1,458.81 -$474.44 -$984.38 $314,525.56
2 F23 -$1,458.81 -$475.92 -$982.89 $314,049.64
3 F24 -$1,458.81 -$477.41 -$981.41 $313,572.23
4 F25 -$1,458.81 -$478.90 -$979.91 $313,093.33
5 F26 -$1,458.81 -$480.40 -$978.42 $312,612.93
6 F27 -$1,458.81 -$481.90 -$976.92 $312,131.03
7 F28 -$1,458.81 -$483.40 -$975.41 $311,647.63
8 F29 -$1,458.81 -$484.92 -$973.90 $311,162.71
9 F30 -$1,458.81 -$486.43 -$972.38 $310,676.28
10 F31 -$1,458.81 -$487.95 -$970.86 $310,188.33
11 F32 -$1,458.81 -$489.48 -$969.34 $309,698.86
12 F33 -$1,458.81 -$491.01 -$967.81 $309,207.85

So, monthly payment is $1,458.81.

and loan table is abovementioned.
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

2. You just took a $315,000, 30-year loan. Payments at the endof each month are flat (equal in every month) at an annual interestrate of 3.75 percent.a)Calculate the monthly payment.b)Provide the appropriate loan table, showing the breakdown ineach month between principal repayment and interest.(PLEASE SHOW STEP-BY-STEP EXCEL FORMULA WITH FUNCTIONS)

Other questions asked by students

Q

Gillette claims that their double-edge shaver is better than the leading brand of single-edge shavers (Lady...

Statistics
Q

Pod characteristics are effected by a number if genes. Pod color (green dominant to yellow), pod surface...

Biology
Q

3. Define and describe binary fission and draw a bacterial growth curve and describe each of...

Biology
Q

1.16 [1pt] Consider an infinite non-conducting plane having a charge density of 1 C/m^2. Sketch electric...

Physics
Q

By using only two resistance coils singly in series or in parallel one should be...

Physics
Q

R A uniform of mass M 1kg radius 1m is moving towards right with velocity...

Physics
Q

e function f is given by the graph below Answer 20 2023 Hawkes Learning 15...

Algebra
Q

table x y 0 1 1 3 2 9 3 27 4 64 5 125...

Algebra
Q

Jul. 5 Sold merchandise inventory for cash, $2,600. Cost of goods, $2,100. Jul....

Accounting
Q

Whispering Winds Corp. had the following transactions. 1. Borrowed $5,769 from the bank by signing...

Accounting
Q

The assembly division of Stiles Watches, Inc. uses the weighted-average method of process costing. Consider...

Accounting
Q

The chances of success increases due to Constant change in decisions, because it strengthens the...

Accounting