Considering purchasing a house

You are considering purchasing a house. The loan that you will need will be for $500,000 and will be paid back with equal monthly payments over 20 years at an annual interest rate of 4.5%. You will complete an amortization table to show the details of the loan payments for the first 2 years of the loan.

Steps to Perform:

Open the worksheet Loan and complete the shaded cells with values or formulas, using functions as appropriate. Widen columns as needed.
Pay particular attention to the correct use of absolute and relative cell references.
Show all values as positive numbers.
Check all cells for correct number formatting. All dollar values should be Accounting format with 0 decimal places.

Sample Solution

Year 1:
Month | Principal Paid | Interest Paid | Balance
1 | $2,187.97 | $2,125.00 | $497,812.03
2 | $2,187.97 | $2,078.13 | $495,624.06

3 | $2,187.97 | $2,031.25 | $493,436.09
4 |$ 2,187.97 |$ 1,984.38 |$ 491,248.12
5 |$ 2,187.97 |$ 1,937.50 |$ 489060 .15
6 |$ 2 , 187 . 97 |$ 1 , 890 . 63 |$ 486 , 872 . 18
7 　　　　………………..

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