Determine the amount of total interest expense on a 25 year mortgage of 52,000 with an interest rate of 14%?
Please show me the calculations to arrive at the correct answers. I would truly appreciate help with this as I can't figure it out on my own. 3. Determine the amount of total interest expense on a 25 year mortgage of 52,000 with an interest rate of 14% assuming monthly compounding after lat payment? 135,786.82 139,867.99 141,300.27 None 6. Obtain the total interest paid during the last 10 years of $52,000 mortgage when n=25 k=14%? 34,795.83 34,797.83 34,799.83 None 7. Obtain the principal amount repaid during years 10 and 11 of a 52,000 mortgage when n=25 k=14%? 1854.35 1857.35 1860.35 None 8. What is the effective yield on a 25 year fixed rate mortgage if 20 points are charged and the nominal interest rate is 14%? Approximation formula 17.2% 18.2% 18.8% None 9. Start with the same number as the previous example loan= 52,000 25 years and k= 0.14%. What is the interest expense associated with first payment? 606.67 608.54 612.12 None
How do I calculate the interest rate (R) if I know the EMI, tenure (N), and Principal (P) ?
It’s very simple with the help of excel. Follow this easy 8 step process on excel to calculate the interest rate (Don’t worry it will take less than 180 seconds to complete it!)Let us consider that your Principal(P) is 10 lakhs,Tenure(N) is 240 months andEmi is Rs 14,000Step 1: Go to excel,Step 2: Enter the actual Principal (P)Step 3: Enter any random number for interest rate (R). (preferably between 6–20)Step 4: Enter tenure (N) (in months)Step 5: Copy the following formula for EMI. (you just need to edit the cell number and paste the formula)=(A2*(B2/1200)*(1+(B2/1200))^C2)/(((1+(B2/1200))^C2)-1)What’s next???? It’s time to use GoalSeek tool :) :)Excel has given us a very powerful and user-friendly function known as the GoalSeek function.Step 6: Go to Data menu in the Menu Bar >> What if Analysis >> GoalseekStep 7: On clicking the GoalSeek option, a small window will pop up.In “Set Cell”- select the cell, containing the EMI value. In my example, it’s cell D4.In “To Value”- enter your actual EMI (the EMI that you already know- In our example- Rs14,000)(so now you have the values you already know i.e. Principal, tenure, and EMI and it’s time to know the interest rate…….)Step 8: In “By Changing Cell”- select the cell containing interest rate value. In my example, it’s cell C4.(Click on “OK” and it’s done… you have your answer)Let me give you a short video for the same :