Moody’s Household Budget
MDS 101-Assignment D – 07/14/2014
Proofed by: JC
Objective:
The Moody family want to purchase a new house. They are considering two houses with different mortgages. They want the budget worksheet display two different monthly mortgages and display the impact of the monthly mortgage payments on the couple’s cash flow. They want to be able to compare between on mortgage plan and another to observe the impact of each plan with their budget.
Steps to achieve objective:
1. A budget worksheet was created, showing the families income and experiences.
2. We need to calculate both the total income and monthly experience to find out what our net chase flow.
3. We needed to create a formula summarizing Barbara’s monthly income of the entire year. We took her minimum monthly income and her maximum income.
4. We completed the Year-End Summary table, by selecting; Yearly, Average, Maximum and Minimum Monthly Income. Also reflecting the monthly values.
5. We created a Mortgage Plan table, showing the annual rate, compound per year, monthly rate, years, and total months of the loan, principal amount and payment per month.
6. By entering the correct formula function (PMT), we were able to calculate the month payment required to reply the loan/
7. We followed steps, 5 & 6 to create the second Mortgage Plan, again by calculating the monthly payment needed to pay the loan off.
Moody's Family Budget
Mortgage Plan 1 Annual Rate 6.70%
Choose a Mortgage Plan (1 or 2) 1 Compounded per Yr. 12
Monthly Rate (Rate) 0.56%
Monthly Years 30
Year-End Summary Yearly Average Maximum Minimum Total Months (Nper) 360
Income Barbara 103,500 8,625 10,200 6,100 Principal (PV) 395,000
Brad 30,700 2,558 2,900 1,900 Payment (PMT) $2,548.85
Total 3660 305 305 305
Expenses...