1) On a cover page, provide the following:
a) A mortgage amount, term and rate approved by your instructor,
b) Show the calculation of the required monthly payment (see page 2).
c) Calculate the total payments and the total interest that would be paid over the life of the mortgage you have selected above
(see page 4).
2) Using Excel, set up an amortization(repayment) schedule for each of the three scenarios:
a) Prepare an amortization schedule for your mortgage with $2,000 additional payment per year
b) Prepare an amortization schedule for your mortgage with $3,000 additional payment per year
c) Prepare an amortization schedule for your mortgage with $5,000
additional payment per year
For each of the above scenario, show:
• Calculation of annual payment
• Total interest paid for the specific scenario,
• Amount of interest saved by payment of additional sum each year, and
• Number of years it took to pay the off the entire mortgage
Note: See the PowerPoint file for this project for step-by-step instructions on how to set up an Excel worksheet, and how to
present the above information at the bottom of each worksheet.