Miami University Amortizing Mortgage Excel Worksheet

Important General Instructions for Reporting Numerical Answers:

– Do not round intermediate calculations.

– Report your answers to the number of decimal places requested.

– Unless otherwise instructed, solve problems in the given units. IE: if given units are in $K, complete your computations in these units and, as applicable, report your answer in these units (without writing “$” or “K”).

– Do not report any numerical answer as a percent. IE: for example, write

0.324 instead of 32.4%.

– Report negative numbers with a leading minus sign, like this (for example):

-23.451

Not like this: (23.451).

– Note that Canvas removes trailing insignificant figures. If you type, for example, 41.350, Canvas will remove the last decimal place and record your answer as 41.35 This is fine because 41.35 = 41.350.

– Assume time is measured in years unless otherwise stated.

Consider a three year, uniform-payment, amortizing mortgage of $50,000, with annual payments of $20,105.74 and 10% annual interest.

Q1:

What is the amount amortized in year 1 (in the EOY 1 payment)? Round your answer to zero decimal places. Write your answer as a positive number.

Q2:

What is the interest portion of the Year 2 (Y2) payment? Round your answer to zero decimal places. Write your answer as a positive number.

Q3:

What is the EOP Balance for Year 2? Round your answer to zero decimal places. Write your answer as a positive number.

Q4:

What is the EOP Balance for Year 3? Round your answer to zero decimal places.