Suppose that the house of your dreams costs $1,200,000. You manage to scrap a 20 percent down payment. You borrow the rest from a bank. The terms of the loan are:
-30 years
-4.5 percent
-Monthly payments
A) Find the amount of each monthly payment.
B) Suppose you decide to sell the house after 12 years:
-What is the loan balance at the end of 12 years?
-What is the amount of your total payments over the 12 years?
-What is the amount of your total principal payments over the 12 years?
-What is the amount of your total interest payments over the 12 years?
C) Use Excel to set up an amortization table.