1 2 Explain Your Calculation Logic And Show The Following Table Explain Used The Pmt Function On Excel To Calculate 1 (43.04 KiB) Viewed 47 times
1 2 Explain Your Calculation Logic And Show The Following Table Explain Used The Pmt Function On Excel To Calculate 2 (43.04 KiB) Viewed 47 times
1 2 Explain Your Calculation Logic And Show The Following Table Explain Used The Pmt Function On Excel To Calculate 3 (52.79 KiB) Viewed 47 times
1-(2) Explain your calculation logic and show the following table: Explain: Used the PMT function on excel to calculate the monthly payments for all alternatives. Monthly Payment No-fee mortgage Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alternative 5 Alternative 6 U nave just purchased a house for $500,000 that is located very closed to the university you attend. You plan to put $100,000 down and borrow $400,000, You need to decide which mortgage deal to take. To find out what your choices are, quotes for 30-year fixed rate mortgage on a new purchase are provided in the following table. The benchmark is the best coupon rate on a mortgage that requires paying no upfront fees or points (Note: Mortgage points are essentially a form of prepaid interest you can choose to pay up front). We will refer to this benchmark mortgage as the no-tee mortgage and assume that the rate on this mortgage is your cost of capital. Basic Information: Mortgage Fee Rate(%) Monthly Rate(%) Points (%) Benchmark (no-fee mortgage 0 0 400,000 3.5 0.2917 Alternative1 0 1620 400,000 3.375 0.2813 0 950 Alternative 400,000 3.5 0.2917 1 950 Alternative3 400,000 3.375 0.2813 1 0 Alternative 400,000 3.5 0.2917 0.25 1048 Alternatives 400.000 3.5 0.2917 0.364 1727 Alternative 400,000 3.5 0.2917 1-(2) Find the monthly payment of the mortgage (7 points). You can apply the formula for PV of Annuity (Chapter 4). Use the monthly rate as discount rate.
Alternatives Monthly Payment No fee Mortgaged (Benchmark) 1796.18 $ Alternative 1 1903.38 $ Alternative 2 1875.35 $ Alternative 3 2264.22 $ Alternative 4 2212.85 $ Alternative 5 1987.68 $ Alternative 6 2091.76 $
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