Use Excel. A business has a mortgage of £200,000 for a term of 25 years, to be...

50.1K

Verified Solution

Question

Finance

Use Excel.

A business has a mortgage of £200,000 for a term of 25 years, tobe paid in equal monthly instalments. Assume an interest rate of4.8% p.a. (calculated monthly) throughout the period.
Determine the regular monthly payment.
Construct a table showing the outstanding balance for eachmonth for the full term of the mortgage.
Determine the amount outstanding when the business is exactlyhalf way through the term of the mortgage.
Determine the time remaining when the outstanding balance ishalf of the original amount.
Explore how the solutions to Q1-4 would change with differentinterest rates. Consider rates of 3.0% and 6%. In each case assumethe rate remains the same for the full term of the mortgage.

Answer & Explanation Solved by verified expert

3.9 Ratings (569 Votes)

As per rules I am answering the first 4 subparts of thequestion1 Monthly payment 1145992 Due to character limitation of the portal The first 10 andlast 10 months See Answer

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: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Use Excel. A business has a mortgage of £200,000 for a term of 25 years, tobe paid in equal monthly instalments. Assume an interest rate of4.8% p.a. (calculated monthly) throughout the period.Determine the regular monthly payment.Construct a table showing the outstanding balance for eachmonth for the full term of the mortgage.Determine the amount outstanding when the business is exactlyhalf way through the term of the mortgage.Determine the time remaining when the outstanding balance ishalf of the original amount.Explore how the solutions to Q1-4 would change with differentinterest rates. Consider rates of 3.0% and 6%. In each case assumethe rate remains the same for the full term of the mortgage.