Edwards signs a 30 year mortgage at 3.5% compounded monthly. The price of his house is $200,000. He makes a down payment of $40,000.
A) What will be his monthly payments? Please show excel functions to solve
B) After 5 years he makes a one-time payment of $50,000 against the remaining principle. How many months will he have remaining on his mortgage? (He had exactly 25 years remaining before he makes the $50,000 payment) Please show excel functions to solve
C) Instead of reducing the NPER after making the $50,000, he requests the bank to keep the NPER to 25 years and reduce his monthly payment instead. What will be his monthly payment going forward? Please show excel functions to solve.