Finance Amortization Table Computer Project

[Admin]

Instructions for FRL 300 Computer Assignment

Use an electronic spreadsheet to prepare an amortization schedule for a $300,000.00, 30-year home loan. Assume that interest, in annual percentage rate, is 6.25%. The loan will be paid back in fixed monthly payments.


Your excel spreadsheet should be designed to compute all of the output numbers by formulas. That is, if one changes any input number, the output should be adjusted automatically. Save your work on a diskette and have it available in case you are asked to turn it in. Observe the pattern of payments for interest and principal for the entire life of the loan. Turn in a one-page printout containing the following information:


a) The amortization table for the first 3 months and the last 3 months (hide the rest of the monthly data).

b) The formula cell table corresponding to the numbers in part (a) above.

c) A short paragraph, describing the pattern of payments for interest and principal.