Explain the instructions on how to solve it see attachment

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Mathematics

Asked: Dec 12th, 2015

Question Description

Please explain in a paragraph on how do you solve it, see the attachment

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..... T-Mobile 11:14 PM @ 7 * 10% Message amortinstr.doc Mortgage Amortization Summary Project Use Excel to conduct the following analysis. Write a report. You should make sure that all work is well organized, visually pleasing and that all questions have been answered. EXCEL: PRESENT VALUE and AMORTIZATION SCHEDULE Consider the following 30 year $325,000.00 mortgage at 3.25% compounded monthly: 1. Find the total amount paid for the mortgage. 2. Find the total amount of interest paid. 3. If you double just the first payment how does that affect - the length of the mortgage the total amount paid - the total interest paid 4. Repeat the above process for a 20 year mortgage (how does the monthly payment change? Type the following fomula; To compute monthly payment enter the Pmt as shown in cell F1. (1) Interest=balance*I; (ii) Balance reduction=paymen-interest; (iii) Balance= balnce-balance reductin t = 30 r= .0325 i=r/12 nét*12 B c D E F PMT 1 n A Amortization schedule variables: 2 30 0725 =SC$2/12 =$B$2*121=(E5*$D$2)/(1- (1+$D$2)^-$E$2) pay#payment interest bal reduct balance 70,000.00 1] =$F$2 =$D$2*$ =SB6- SE5-$D6 ES $C6 Amortization schedule variables: t r n i 0.0725 0.006042 PMT 360 1534.897 30 pay# payment interest bal reduct balance 0 225,000.00 1 1534.897 1359.375 175.5216 224,824.48 2 1534.897 1358.315 176.5821 224,647.90 3 1534.897 1357.248 177.6489 224,470.25 4 1534.897 1356.174 178.7222 224,291.53

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