You must use the FINANCIAL FUNCTIONS in EXCEL to calculate your answers.
You are planning to purchase a house that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.99% on a 30-year mortgage.
1. Use function “PMT” to calculate your mortgage payment.
2. Use function “PV” to calculate the loan amount given a payment of $1500 per month. What is the most that you can borrow?
3. Use function “RATE” to calculate the interest rate given a payment of $1500 and a loan amount of $400,000.