9 problems total
Questions are attached with stars in the chapters
Use an MS Excel spreadsheet to calculate the solutions for the problems listed below. You must demonstrate your detailed calculations by embedding the formulas/functions in the cells, rather than displaying those details as you would in a word processing document. You are permitted to work with other students from this course, but it is important that each student develop comprehension of each of the techniques required in this assignment. Of course, your individual submission must be unique and not shared with other students (i.e., create your own spreadsheet).
- Chapter 5 Problems: 1 (parts a & b only), 2–3, 8, 10
- Chapter 6 Problems: 2 (parts a & b only), 3 (part a only), 4 (part a only)
- Chapter 6, Problem 6 Ignore the information concerning the availability of a new first mortgage at 12.5%. In this situation, one would not even consider that, but would instead only decide whether to do a wraparound for $150,000 at 12% or add a home equity loan of $50,000 at 14%.
- Chapter 6, Problem 10 (part a only) Bi-weekly payments means the loan is still amortized over the full-term, but payments are made 26 times a year at half the normally amortized rate (in effect, the borrow is making a full extra payment for each year of the loan which will lead to a shorter term until payoff). Remember to divide the annual interest rate by 26 for the bi-weekly calculation.