You have just sold your house for $1,000,000 in cash. Your mortgage
was originally a 30-year mortgage with monthly payments and an
initial balance of $800,000. The mortgage is currently exactly 18½
years old, and you have just made a payment. If the interest rate
on the mortgage is 5.25% (APR), how much cash will you have from
the sale once you pay off the mortgage? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. |
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Sale price | $ 1,000,000 | |||
Initial balance | $ 800,000 | |||
Number of years | 30 | |||
Periods per year | 12 | |||
Periods into the loan | 222 | |||
APR | 5.25% |
Discount rate | |
Monthly payment | |
Periods remaining | |
PV of mortgage | |
Cash from sale |
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