Scenario for Week 2: Amortization - 32800

Request Posted by

NewYears1969

Rating : No Rating
• Requests:0
• Solutions:0
Earned: \$0
Request Detail
Price: \$10
• Due on: Fri 22 Nov, 2013 (08:38am)
• Asked on: Fri 22 Nov, 2013
• Due date has passed, but you can still Post Solution.
Description

The scenario is designed to help you determine and evaluate the payment amount of a car loan and a mortgage, based on the assumption that your household income is \$36,000 per year or \$3,000 per month.

Based on your income, you may spend 28% of your monthly income on housing, and 10% on a car loan. You are to put a 3% down payment on the house and a 10% down payment on the car.

Required:

Using Microsoft Excel, address the following issues:

1. What is the maximum car payment and mortgage payment you can afford with the following conditions: your monthly household income, 10% for the car payment, and 28% for the mortgage payments?

1. Assume a 10% down payment on the car and a 3% down payment on the house. Also, assume that you can get financing for the car at 7% for 60 months, and the house can be financed at 5% for 30 years. How much could you spend on the car and the house? You must submit your calculations in a Microsoft Excel document showing how answers were reached.

1. Create a complete amortization schedule for the car, using the information in questions 1 and 2.

1. Discuss the distributions of principal, interest and the balance over the life of the loan.

Deliverable:

By Tuesday, November 26, 2013, submit your completed responses to this Final Project assignment to the W2: Assignment 2 Dropbox. Your submission must be in a Microsoft Excel spreadsheet. Show all your calculations, and use textboxes for the narratives.

2 Solution for Scenario for Week 2: Amortization
Title Price Category solution By purchased
Scenario for Week 2: Amortization (detailed solution in excel sheet)
\$15.00 no category fornicola 0 time(s)
Scenario for Week 2: Amortization
\$20.00 no category nitkkr 1 time(s)