Finance Spreadsheet Project, part 2

Due Oct 20, 2016 by 11:55pm
Points 100
Submitting a text entry box

For this assignment, create a new Google Sheets file called Loan Comparison inside the CS120/Projects/Finance folder you created in part 1. Your file will contain two sheets. You will invite your instructor to edit the folder, and submit a shareable link to view your folder.

For both sheets, include columns for period, date, payment, interest amount, balance reduction, and balance. You will also need places for the APR, the PMT() function, number of years, total interest paid, and total paid on some of the sheets. So, your sheets could look something like the table below, but with a few more rows.

period	date	payment	interest amount	balance reduction	balance
0					$155,000.00	APR =	12%
1	Jan-4	$1,225.73	$645.83	$579.90	$154,420.10	Years =	15
2	Feb-4	$1,225.73	$643.42	$582.31	$153,837.79	PMT =	$1,225.73

Now here is what you need to do.

Explore and Discuss

Compare a 15 year mortgage Links to an external site. to 30 year mortgage Links to an external site.. Use the same initial balance and APR for both, based in the criteria below, to create the two amortization schedules, each in its own sheet.

$70,000 ≤ Balance ≤ $200,000
3.5% ≤ APR ≤ 10.9%
Sheet 1 will be the 15 year mortgage. Label the sheet appropriately.
Sheet 2 will be the 30 year mortgage. Label the sheet appropriately.
In a WordPress post, discuss the pros and cons of carrying the loan for 15 years versus 30 years. Post this along with a shareable link to view the spreadsheet in a WordPress post. Here are some tips for your discussion:
- State the loan amount and the APR.
- Compare the monthly payments.
- Compare the total inrerest paid for each scenario.
- Think about why a person might choose to pay more interest over 30 year for a lower monthly payment now.
  OR
- why a person might choose a higher monthly payment now to save money in the long term.