Question

If work can be done in excel using formulas that would be
appreciated:

You can afford a $700 per month mortgage payment. You’ve found a
30-year loan at 5.5% interest. **a**. How big of a
loan can you afford? **b**. How much total money will
you pay the loan company? **c.** How much of that
money is interest?

Answer #1

**Question
a:**

P = Monthly mortgage amount = $700

n = 30*12 = 360 months

r = monthly interest rate = 5.5%/12 = 0.45833333%

Maimum loan amount can be calculated using the below formula

Maximum loan amount = P * [1 - (1+r)^-n] / r

= $700 * [1 - (1+0.45833333%)^-360] / 0.45833333%

= $700 * 0.807224517 / 0.0045833333

= $123,285.2

Therefore, the amount of loan is $123,285.2

**Question
b:**

Total amount paid for the loan = Number of months * monthly loan payment

= 30*12*$700

= $252,000

Therefore, total amount paid for the loan is $252,000

**Quesiton
c:**

Amount of interest over the loan = Total amount of loan - loan amount

= $252,000 - $123,285.2

= $128,714.8

Therefore, amount of interest paid over the loan is $128,714.8

You can afford a $1250 per month mortgage payment. You
have found a 30 year loan at 7% interest.
How big of a loan can you afford?
How much total money will you pay the loan company?
How much of that money is interest?

You can afford a $1200 per month mortgage payment. You've found
a 30 year loan at 6% annual interest compounded monthly.
a) How big of a loan can you afford?
$
b) How much total money will you pay the loan company?
$
c) How much of that money is interest?
$

You can afford a $1500 per month mortgage payment. You've found
a 30 year fixed loan at 7.3% interest.
Round all answers to the nearest cent as needed.
a) How big of a loan can you afford? $
b) How much total money will you pay the loan company? $
c) How much of that money is interest? $
Using the following conversions between the metric and
U.S. systems, convert the measurement.
Round your answer to 6 decimal places as...

You can afford a $300 per month car payment. You've found a 5
year loan at 6% interest. How big of a loan can you afford?

You can afford a $300 per month car payment. You've found a 5
year loan at 7% interest. How big of a loan can you afford?

You can afford to pay $750 per month for mortgage payments. How
large a loan can you afford if the interest rate is 4.25% for a
30-year fixed mortgage?

You friend Stephen is planning to buy a house. He believes he
can afford a mortgage payment of $3,750 per month. The current
interest rate on a 30 year mortgage is 3.25% per year. What is the
largest mortgage he can afford based on a 30 year loan if the
lender requires a 20% downpayment? How much does he need in down
payment for the most expensive house he can afford? ]

Answer using excel: Please show how you do it on
excel with formulas!
1. Given the following information, calculate the effective
borrowing cost (rounded to the nearest tenth of a percent). Loan
amount: $166,950, Term: 30 years, Interest rate: 8 %, Monthly
Payment: $1,225.00, Discount points: 2, Other Closing Expenses:
$3,611.
A. 7.7% B. 8.2% C. 8.5% D. 9.1%
2. Suppose a potential home buyer is interested in taking a
$500,000 mortgage loan that has a term of 30 years...

Show work through excel using formulas: but please actually show
each step you use to do it on excel!
1. Assume you have taken out a balloon mortgage loan for
$2,500,000 to finance the purchase of a commercial property. The
loan has a term of 5 years, but amortizes over 25 years. Calculate
the balloon payment at maturity (Year 5) if the interest rate on
this loan is 4.5%.
A. $5,637.99 B. $13, 895.82 C. $2,196,447.59 D.
$2,495,479.19

Mortgage Choice: You have just graduated and accepted one of
many job offers. You estimate that you can afford a monthly
mortgage payment of $1300 per month (this is principal AND
interest). How big of a mortgage loan can you take on if you are
given:
a 4.5% annual interest rate over 15 years?
a 5.5% annual interest rate over 30 years?

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