Project #62382 - Time Value of Money with Excel (Corporate Finance)

There are 5 questions asked to answer from a Home Mortgage Comparison report and using excel formulas to answer the questions. I have done a little bit of the first question, but the professor went to fast for me to get everything down so some of it is wrong. 1. What are the monthly payments for the 4 traditional mortgages, the bullet and the IO loans? If the Storys want the lowest monthly payment, which alternative is the best? 2. Assuming that they plan to live in the house only for five years and that they are only interested in monthly payments, prepare an amortization table for the first five years for the 6 alternative loans. Calculate the total amount paid, the total interest paid, the total principal paid and the remaining balances after 60 months. Which alternative has the lowest amount of interest paid in those 5 years? Which alternative has the highest amount of principal paid (the lowest remaining balance)? Which alternative has the lowest total cost to cancel (service & pay off) the loan? 3. Assume the Storys get paid biweekly and are really interested in the smart loans. How long would it take to pay off the 4 traditional mortgages if they choose the smart payments plan? How much money do they save by doing smart loans compared to traditional mortgages? 4. Which of the 10 options (4 traditional, 4 smart, bullet and IO) would be chosen by a house flipper? Which of the 10 options would be best for someone that plans to retire and die in that house? 5. Is there a mortgage option that is best for everyone? Explain advantages and disadvantages (in term of payments and risks) of the best alternatives identified in the previous question. HINTS: Use one Excel sheet for each loan mentioned in the case (10 sheets). Once all numbers are available, create tables to compare all options in order to answer the case questions

Subject Business
Due By (Pacific Time) 03/24/2015 12:00 am
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy