### Mortgage Payment, Mortgage, Formula, Excel, Mortgage Loan, Afford, Excel Function – Quiz

The key terms in this Math course include Mortgage Payment, Mortgage, Formula, Excel, Mortgage Loan, Afford, Excel Function, Monthly Payment, Down Payment, Finance, Purchase Price, Interest, Lifetime of the Loan, PV, PMT, FV

Jenny has decided that she can afford a monthly mortgage payment of \$485. She has been offered a 3.5% 15 year mortgage from her bank. What formula could you type into Excel to determine what the largest mortgage loan she can afford?

=PV(.035, 15, -485*12)

=FV(.035/12, 12*15, -485)

=PMT(.035/12, 15*12, -485)

=PMT(.035/12, 12*15, -485*12*15)

=PV(.035/12, 15*12, -485)

=485*.035/12*15

Sally has decided to purchase a used car. The car costs \$5800, she was able to pay \$500 down; she was also able to secure a 3-year loan at 7.5%.   She knows that she can afford to spend a maximum of \$200 on a car payment each month.  Write the Excel function that would give Sally her required monthly payment for this car:

= PMT (.075/12,12*3, -5300 )

Answer 1:

##### PMT

Answer 2:

-5300

Jamal saves \$2,000 to use as a down payment on new car priced at \$14,999.  He is able to finance the remainder of the purchase price over 5 years at 3.5% interest.

If Jamal only pays the required \$236.47 each month, how much will Jamal pay in car payments over the lifetime of the loan?

How much will Jamal pay in interest over the lifetime of the loan?

Round your answers to the nearest cent.  Do not include units on your answer.

Answer 1:

14,188.20

Answer 2:

1,189.20

Jenny has decided that she can afford a monthly mortgage payment of \$485. She has been offered a 3.5% 15 year mortgage from her bank. What formula could you type into Excel to determine what the largest mortgage loan she can afford?

=PV(.035, 15, -485*12)

=FV(.035/12, 12*15, -485)

=PMT(.035/12, 15*12, -485)

=PMT(.035/12, 12*15, -485*12*15)

##### =PV(.035/12, 15*12, -485)

=485*.035/12*15

Sally has decided to purchase a used car. The car costs \$5800, she was able to pay \$500 down; she was also able to secure a 3-year loan at 7.5%.   She knows that she can afford to spend a maximum of \$200 on a car payment each month.  Write the Excel function that would give Sally her required monthly payment for this car:

= PMT (.075/12,12*3, -5300 )

Answer 1:

PMT

Answer 2:

-5300

Jamal saves \$2,000 to use as a down payment on new car priced at \$14,999.  He is able to finance the remainder of the purchase price over 5 years at 3.5% interest.

If Jamal only pays the required \$236.47 each month, how much will Jamal pay in car payments over the lifetime of the loan?

How much will Jamal pay in interest over the lifetime of the loan?

Round your answers to the nearest cent.  Do not include units on your answer.

Answer 1:

14,188.20

Answer 2:

1,189.20

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