THE PICTURE IS THE EXCEL TEMPLATE YOU MUST FILL OUT Suppose that you borrowed $25,000 student loans from Sallie Mae to attend UM - Dearborn. Once you graduate, you are required to start paying your loan and interest. The APR for your loan is 5.54%. Each month you will have to make interest payment and principal repayment. Suppose that you can choose the following two repayment plans: Standard repayment plan: if you choose this plan, you will have to pay off your loan in 10 years with the same amount of payment each month. Fixed extended repayment plan: if you choose this plan, you will be allowed to pay off your loan in 25 years with the same amount of payment each month. 1. Please use Excel to work on the following questions: How much should you pay each month for these two plans?• Set up the loan amortization tables for these two plans. How much interest will you pay in total when you pay off your loan for these two plans? mortization Schedule for your Student Loan (Standard Repayment Plan) Student loan Interest rate Year Loan 2 onth (2) Beginning of Month Loan Balance $250,000.00 BN $25,000 Monthly payment 5.54% Term of loan: Table 1: Summary of the Payments based on Two Repayment Plans Pepayment Plan 131 Monthly gyment 10-Year Loan 25-Year Loan Monthly Payment -$1,387.15 -$1,385.00 (4) ($1,387.15) 120 Interest Total Interest Payment 151 Scheduled Principal Repayment Principal Repayment. (6) End of Month Loan Balance Amortization Schedule for your Student Loan (Extended Repayment Plan) $25,000 Menthly payment A www 5.54% Term of loan: 300 25 Year Loan (1) Month Student ban: Interest rate: (8) (21 Beginning of Month Monthly Loan Balance Payment Interest (5) (6) Scheduled P End of Month Repayment Loan Balance
THE PICTURE IS THE EXCEL TEMPLATE YOU MUST FILL OUT Suppose that you borrowed $25,000 student loans from Sallie Mae to attend UM - Dearborn. Once you graduate, you are required to start paying your loan and interest. The APR for your loan is 5.54%. Each month you will have to make interest payment and principal repayment. Suppose that you can choose the following two repayment plans: Standard repayment plan: if you choose this plan, you will have to pay off your loan in 10 years with the same amount of payment each month. Fixed extended repayment plan: if you choose this plan, you will be allowed to pay off your loan in 25 years with the same amount of payment each month. 1. Please use Excel to work on the following questions: How much should you pay each month for these two plans?• Set up the loan amortization tables for these two plans. How much interest will you pay in total when you pay off your loan for these two plans? mortization Schedule for your Student Loan (Standard Repayment Plan) Student loan Interest rate Year Loan 2 onth (2) Beginning of Month Loan Balance $250,000.00 BN $25,000 Monthly payment 5.54% Term of loan: Table 1: Summary of the Payments based on Two Repayment Plans Pepayment Plan 131 Monthly gyment 10-Year Loan 25-Year Loan Monthly Payment -$1,387.15 -$1,385.00 (4) ($1,387.15) 120 Interest Total Interest Payment 151 Scheduled Principal Repayment Principal Repayment. (6) End of Month Loan Balance Amortization Schedule for your Student Loan (Extended Repayment Plan) $25,000 Menthly payment A www 5.54% Term of loan: 300 25 Year Loan (1) Month Student ban: Interest rate: (8) (21 Beginning of Month Monthly Loan Balance Payment Interest (5) (6) Scheduled P End of Month Repayment Loan Balance
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 27M
Related questions
Question
Transcribed Image Text:THE PICTURE IS THE EXCEL TEMPLATE YOU MUST FILL OUT Suppose that you borrowed $25,000 student loans from
Sallie Mae to attend UM - Dearborn. Once you graduate, you are required to start paying your loan and interest. The APR
for your loan is 5.54%. Each month you will have to make interest payment and principal repayment. Suppose that you
can choose the following two repayment plans: Standard repayment plan: if you choose this plan, you will have to pay
off your loan in 10 years with the same amount of payment each month. Fixed extended repayment plan: if you choose
this plan, you will be allowed to pay off your loan in 25 years with the same amount of payment each month. 1. Please
use Excel to work on the following questions: How much should you pay each month for these two plans? • Set up the
loan amortization tables for these two plans. How much interest will you pay in total when you pay off your loan for
these two plans?
•
Amortization Schedule for your Student Loan (Standard Repayment Plan)
Student loan:
Interest rate
$25,000 Monthly payment:
5.54% Term of loan:
($1,387.15)
120
Table 1: Summary of the Payments based on Two Repayment Plans
Pepayment
Plan
10-Year Loan
Monthly
Payment
-$1,387.15
Total Interest
Payment
25-Year Loan
-$1,385.00
Principal
Repayment
Amortization Schedule for your Student Loan (Extended Repayment Plan)
Student loan:
$25,000 Monthly payment:
Interest rate:
554% Term of loan:
300
10-Year Loan
(1)
25 Year Loan
(2)
31
(4)
(51
(5)
(1)
Beginning of Month
Month
Loan Balance
Monthly
Tyment
Interest
Scheduled Principal
Repayment
End of Month
Loan Balance
Month
(2)
Beginning of Month Monthly
Loan Balance
Payment
(3)
(4)
(5)
(6)
Scheduled P End of Month
Interest
Repayment Loan Balance
BN
$250,000.00
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 12 images
Recommended textbooks for you
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning