This short project (also in Week 7) allows students to calculate mortgage payments using all of Excel’s functionality for principle, interest, and future value. This represents half of the project points for Week 7.
Start a new spreadsheet
Create the layout shown below.
Enter the payment number, but formulas must be used to calculate all payment, interest payment, principle payment, and balance values.
To get the balance, deduct the principle payment from the amount. For the first payment, you will need to subtract it from the starting amount. Payments are shown as negative (in parentheses) because it’s money leaving your account.
Use absolute cell references for the interest rate, number of years, payments per year, and loan amount.
Remember that the rate is per period (month) so divide the annual rate by the number of months (C1/C3).