Problem: Use a spreadsheet software (for example, MS Excel), construct an amortization table for the following mortgage. In the amortization table, provide all the information listed below. (Assuming interest is compounded monthly and payments are due at the end of the month).
For a 15-year variable-rate-level-payment mortgage (VRM) of $200,000 with the following mortgage rates:
Year 1-3: 5%, Year 4-7: 6%, Year 8-11: 8%, Year 12-15: 9%, compute and illustrate the following in an amortization table:
- Monthly Payment of the mortgage.
- Mortgage Balance Remaining at the end of each month (Total 180 months).
- Principal Repayment for each month.
- Interest Expenses for each month, each year, and the life of the loan.