Question: Ms. Manifee would like to purchase a new condo for $105,000. She plans to make a down payment of $50,000 and to borrow the rest of the money from the bank. The bank charges an annual percentage rate of 4% compounded daily. She agrees to monthly payments to pay off the loan in 10 years.
a) Write or copy from an Excel table the amount of interest paid each month, the amount that is paid on the principal each month, and the balance remaining at the end of each month. You only need to copy the Excel table for the first 2 years of the 10-year loan. Please do not attach the Excel file as a separate file in your homework submission.
b) Assume Ms. Manifee has made 14 payments and would like to pay off the balance immediately after the 14th payment. Write down the equation or Excel formula that enables you to calculate this balance. The formula should not be recursive.