Spreadsheet Assignment #1
Intermediate Accounting 2 – ACCT342/542
Professor Albrecht purchased a house on
September 1, 2003. The house cost $213,000. He
made a down payment of $51,000 and borrowed the
rest in the form of a mortgage (real estate loan where
real estate is collateral until final repayment).
Professor Albrecht was quoted a fixed rate of
5.25% (doesn’t change during life of mortgage) for a
30 year mortgage, and 12 monthly payments per
year. He accepted.
Required:
Part 1: Prepare an amortization table that will be useful in accounting for this mortgage,
assuming the mortgage was taken out September 1, 2003, and the first payment was due on
October 1, 2003. Place this amortization table on page A of the spreadsheet. On page A,
answer these questions (highlight the answers in yellow).
What is the sum of total payments made over the life of the loan?
How much total interest is to be paid over the life of the loan?
How much is the 360th and final payment?
Part 2: Professor Albrecht has been paying an extra $30 every month, starting with the first
payment. Prepare an amortization table that accounts for each additional $30 payment
made so far. Place this amortization table on page B of the spreadsheet. On page B,
answer these questions (highlight the answers in yellow).
If Professor Albrecht continues paying an extra $30 every month, in what year and
month will the mortgage be paid off?
What is the amount of the payment in the month the mortgage is paid off?
What is the sum of total payments made over the life of the loan?
How much total interest is to be paid over the life of the loan?
General Instructions
Refer to the professor’s notes titled, Amortization tables on MS Excel, for instructions in creating an
amortization table using a spreadsheet program.
Your spreadsheet project will be graded, and the spreadsheet grade will be part of your course grade.
Send your spreadsheet to Professor Albrecht (albrecht@[Link]) as an attached file to an e-
mail. You should name your spreadsheet “A1_Lastname_Firstname” where Lastname is your last
name and Firstname. For example, John Smith would name his spreadsheet file
© 2014 by W. David Albrecht. . 30
“A1_Smith_John” The assignment will not be accepted on paper. Your spreadsheet files
should be saved in MS Excel format (xls or xlsx).
You may not work together with anyone (in any sort of way) on this project. You may not consult with
anyone in a lounge, you may not borrow a copy of a friend’s file to see how to work the problem
(nor may you loan a copy of your file to anyone else in class), you may not work alongside
anyone from class in a campus computer lab, you may not chat with said person while working in
the lab. You may not ask (or help) a classmate about creating a spreadsheet to answer loan HW
problems. Aiding a classmate on this project, or receiving aid from anyone on this project
constitutes academic dishonesty. The penalty for academic dishonesty on this assignment is a
zero for the project.
Cells A1..A3 of each page should include this information:
Name
Spreadsheet project 1
Date
You should have a table of input values, as well as the amortization table. The final value in your table
of input values should be a function computing the amount of a monthly mortgage payment. Your
amortization table should contain no numbers, only equations or functions. Spreadsheets that are
designed to be general purpose receive more credit than those that are very specific. Each payment
should be properly dated.
Use proper formatting (currency amounts in either currency or comma formats, interest rates in percent
format). Currency amounts should be rounded and formatted to two places, percent should be
formatted to two places but not rounded. Rounding on the percent will create a significant error.
Grading rubric:
Feature Weight
Input table 10%
Pmt function 10%
Round function 14%
Final payment equation 14%
Sum function for total payments, interest 5%
Formatting (two places, comma, etc) 10%
Part 1 table (organization, no numbers) 23%
Part 2 table (organization, extra payment) 14%
Total 100%
© 2014 by W. David Albrecht. . 31
