Reference no: EM132714948

Question - You are a financial consultant and need to provide information to a client who would like to renew his mortgage. The loan amount is $462,000 and the new mortgage agreement will start on Oct 1, 2020.

Provide your client with 3 different options:

Calculate what his monthly payments would be if the loan was amortized over the following terms:

a. 10 years

b. 20 years

c. 25 years

Use a bank's special mortgage rate of 2.16% (that is the annual percentage rate and will not change over the amortization period). Calculate the total interest amount paid at the end of amortization terms. Calculate monthly interest payment and monthly principal payment for each options.

The project must be completed on an Excel worksheet. The worksheet needs to contain variable data such as monthly payment, constants such as interest rate, and calculations using proper Excel functions. Use cell references (absolute, relative or mixed references) appropriately and include all formulas.

In order to obtain full marks, your worksheet needs to satisfy the evaluation criteria:

Presentable layout of your worksheet

Use of Excel Functions

Reflective summary: use the two given questions as a guide when writing up your project reflections.

1. Explain your understanding of the Excel PMT function in this project.

2. What were your three strategies in order to complete the project?