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Fin 2030 week 2 Assignment 2




Fin 2030 week 2 Assignment 2;Fin 2030 week 2 Assignment 2;Part One: Quantitative Exercises;Determine the present value solutions to period, interest, and payments.;Calculate the future value solutions for period, interest, and payments.;Determine the answers relating to annuity, perpetuities, and annuity due problems.;Download the Week 2 quantitative exercises called FIN2030_W2_A2_Template.xlsx.;Complete the assignment using this template. You may use the formulas in Microsoft Excel and/or a financial calculator. Be sure to summarize you r results with embedded formulas in the spreadsheet, using the mathematical equations, or the steps taken on the financial calculator.;Part Two: Final Project 1: Amortization;The final project involves applications in personal finance, as follows;Week 2: Amortization;Week 3: Portfolio Analysis;Week 4: Government Securities;Week 5: Portfolio Return and Risk;Also in Week 5, you will prepare a report and presentation that summarize all of your work.;Scenario for Week 2: Amortization;The scenario is designed to help you determine and evaluate the payment amount of a car loan and a mortgage, based on the assumption that your household income is $36,000 per year or $3,000 per month.;Based on your income, you may spend 28% of your monthly income on housing, and 10% on a car loan. You are to put a 3% down payment on the house and a 10% down payment on the car.;Required;Using Microsoft Excel, address the following issues;What is the maximum car payment and mortgage payment you can afford with the following conditions: your monthly household income, 10% for the car payment, and 28% for the mortgage payments?;Assume a 10% down payment on the car and a 3% down payment on the house. Also, assume that you can get financing for the car at 7% for 60 months, and the house can be financed at 5% for 30 years. How much could you spend on the car and the house? You must submit your calculations in a Microsoft Excel document showing how answers were reached.;Create a complete amortization schedule for the car, using the information in questions 1 and 2.;Discuss the distributions of principal, interest and the balance over the life of the loan.


Paper#78074 | Written in 18-Jul-2015

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