You are considering buying a home in the next 6 months and the bank has offered you the following

Asked by Uaeman, uae Tue Nov 6, 2007


1. Based on your income and credit history, you qualify for Dhs. l, 500,000. = PV
2. You will be required to required to make monthly payments (interest principal)
3. The tenor of the mortgage is 30 years. = n
4. The bank's required rate of return 8% = i

Using the above information and Microsoft Excel, please construct a full amortization table showing the opening balance, interest payments, principal payments, the ending balance for all years till the mortgage is full paid-off.


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Holly Grigai…, Agent, Cottonwood, AZ
Tue Nov 6, 2007
I do not use excel much, but go to You can do this yourself very easily there. If you want to see how the math works: Principal (amount you borrow) X rate (8%) X time (30/360). This will give you the amount of interest due for the first month. Subtract this amount from the payment amount you obtained from the above site to get the amount of principal paid on the first payment. Subtract this amount from your original principal balance. You now know how much you owe on the note after making the first payment. Take the new principal balance, and put it through the formula again for your 2nd months payment and so on......358 left to go!
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Jim Walker, Agent, Carmichael, CA
Tue Nov 6, 2007
Droopy Head Syndrome is only 1 of 32 possibilities for the abbreviation dhs.
Uaeman, the answer is: you don't need the full 30 year amortization table becasue 8% is "B" paper rate.
The borrower would refinance within a few years to a better interest rate.
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