The purpose of this assignment is to demonstrate that the student understands how to calculate both a fixed rate and an adjustable rate mortgage under a variety of terms and variables. Submit to your instructor your answers to the questions in Part One and Part Two. Since this assignment is based on calculations, you are required to show all your work in detail for each answer by listing the components for each calculation and explaining the calculation taking place to reach the answer submitted. This may be done on a Word document or an Excel spreadsheet. Make sure that all work is shown in your submission for full credit. Part One Please answer the following questions for a fixed-rate mortgage as a fully amortizing mortgage loan made for $175,000 at 4.5% interest for 30 years. What is the monthly payment for a Constant Payment Mortgage (CPM) loan? What will the total of payments be for the entire 30 year period? Of this total, how much will be interest? Assume the loan is repaid in the end of 8 years. What will be the outstanding loan balance paid at that time? How much total interest will have been collected by then? Assume the borrower chooses to reduce the loan balance by $5000 at the end of year 8. What will be the new loan maturity date assuming that loan payments are not reduced? Part Two Please answer the following questions for an adjustable-rate mortgage under the following conditions: an Adjustable Rate Mortgage (ARM) for $140,000 is made at the time when the expected start rate is 6%. The loan will be made with the teaser rate of 3% for the first year, after which, the rate will be reset. The loan is fully amortizing, has a maturity of 25 years, and will be made monthly. What will the monthly payments (principle and interest) be during the first year? Assuming that the reset rate is 7% at the beginning of Year (BOY) 2, what will the monthly payments be (principle and interest) beginning in Year 2 through Year 25? By what percentage will monthly payments increase from Year 1 to Year 2? What if the reset date is three years after loan origination, and the reset rate is 8%. What will the monthly payments be (principle and interest) beginning in year 4 through year 25? Since this assignment is based on calculations, you are required to show all your work in detail for each answer by listing the components for each calculation and explaining the calculation taking place to reach the answer submitted. This may be done on a Word document or an Excel spreadsheet. Make sure that all work is shown in your submission for full credit. Part One PROBLEM #1: Determine the correct formula to use to solve for the monthly payment. Plug in each of the corresponding figures. REMINDER: multiply the # of years times 12, and input the total # of months. REMINDER: divide the interest rate by 12, and input the monthly rate. Solve for payment (this is a hint regarding which formula to use). PROBLEM #2: From Problem #1 above, multiply the answer by the total number of months the loan is payable. That is the total amount paid over the life of the loan (both principal and interest). From the total loan payments, subtract the principal amount. The resulting sum equals the total interest to be paid over the life of the loan. PROBLEM #3: Determine the correct formula to use to solve for the mortgage balance. Plug in each of the corresponding figures. REMINDER: multiply the # of years times 12, and input the total # of months. REMINDER: divide the annual interest rate by 12, and input the monthly rate. Solve for mortgage balance / future value (this is a hint regarding which formula to use). You will need this number for Step #5 below. Calculate the total payments by multiplying the monthly payment by the number of months. REMINDER: multiply the # of years times 12 to get the # of months. Add the total payments (step 4) to the mortgage balance (step 3) and then subtract the original principal. The resulting sum equals the total interest collected for 8 years. PROBLEM #4: Determine the correct formula to use to solve for the mortgage balance. Plug in each of the corresponding figures. REMINDER: multiply the # of years times 12, and input the total # of months. REMINDER: divide the interest rate by 12, and input the monthly rate. Solve for mortgage balance / future value (this is a hint regarding which formula to use). Subtract the $5,000 loan principal reduction to arrive at the new balance. Determine the correct formula to use to solve for the number of months (this is a hint regarding which variable to solve for). Plug in each of the corresponding figures. REMINDER: use the new loan balance you calculated in Step #4 above. Solve for maturity (number of months left to pay the mortgage). Part Two TO SOLVE PROBLEMS #1 – #3: Create an Excel® table with the following 7 columns: Year BOY (beginning of year) Balance Annual Interest Rate Monthly Interest Rate Payments Annual Amortization EOY (end of year) Balance In the first row (Year #1) Insert figures into the following fields: BOY, Annual Rate Calculate the Monthly Rate (hint: this is the annual rate ÷ 12). Calculate the Payment, Annual Amort., and EOY. In the second row (Year #2): The EOY balance of Year #1 becomes the BOY balance for Year #2. Insert the new Annual rate of 7%. Calculate the Monthly Rate (hint: this is the annual rate ÷ 12). Calculate the Payment, Annual Amort., and EOY. Answer the assignment questions # 1-3. Question #1: The monthly Payment during Year #1 is shown in the first row. Question #2: The monthly Payment during Year #2 is shown in the second row. Question #3: Calculate the difference between the 2 monthly payments, and divide it by Year #1 payment to solve for the percentage increase in monthly payment. FOR PROBLEM #4: Go back to the table you just created. Erase the data in the 2nd The EOY balance of the previous year is the BOY balance for the next year. Insert the same Annual rate of 3%. Calculate the Monthly Rate (hint: this is the annual rate ÷ 12). Calculate the Payment, Annual Amort., and EOY. Continue repeating this for rows #3 and #4. Note that Row #4, the interest rate changes to 8%. Answer the assignment question #4. Question #4: The monthly Payment during Year #4 is shown in the fourth row.

Mastering the Art of Online Learning: Your Guide to Acing Online Courses

Introduction

In recent years, the popularity of online courses has skyrocketed, offering learners the flexibility to acquire new skills and knowledge from the comfort of their homes. However, succeeding in online courses requires a different approach compared to traditional classroom settings. To help you make the most of your online learning experience, this article presents essential strategies and tips to ace your online courses.

1. Set Clear Goals and Plan Ahead

Before embarking on an online course, establish clear goals and objectives. Determine what you hope to achieve by the end of the course and break down your goals into manageable milestones. Create a study schedule that aligns with your other commitments, ensuring you allocate dedicated time for coursework, assignments, and revision.

2. Create a Productive Study Environment

Establishing a conducive study environment is crucial for online learning success. Find a quiet, well-lit space where you can concentrate without distractions. Remove any potential interruptions, such as notifications from social media or email. Organize your study materials and have a reliable internet connection to ensure seamless access to course materials.

3. Actively Engage in the Course

Active participation is key to mastering online courses. Engage with course materials, including videos, readings, and interactive components. Take comprehensive notes, highlighting key concepts and ideas. Participate in discussion boards, forums, and virtual meetings to interact with instructors and peers, fostering a sense of community and enhancing your understanding of the subject matter.

4. Manage Your Time Effectively

Online courses offer flexibility, but it’s essential to manage your time wisely to avoid falling behind. Create a detailed schedule, allocating specific time slots for coursework, assignments, and studying. Break down larger tasks into smaller, manageable segments to prevent procrastination. Prioritize tasks based on deadlines and dedicate focused time to each one, ensuring consistent progress throughout the course.

5. Develop Effective Communication Skills

Online courses often rely on written communication, making it crucial to hone your skills in this area. Be concise and clear in your written responses, paying attention to grammar and spelling. Actively participate in discussions, asking thoughtful questions and providing constructive feedback to your peers. Regularly check your course emails and notifications, ensuring you stay updated with any important announcements or changes.

6. Utilize Available Resources

Take full advantage of the resources provided by your online course platform and instructors. Familiarize yourself with the learning management system (LMS) and explore its features. Access supplementary materials, such as textbooks, lecture slides, and external resources recommended by instructors. Utilize online libraries, research databases, and tutorial services to deepen your understanding of the subject matter.

7. Stay Motivated and Engaged

Maintaining motivation throughout an online course can be challenging, particularly when faced with competing priorities or a lack of face-to-face interaction. Set short-term goals and reward yourself upon their completion. Connect with fellow learners through virtual study groups or online forums to foster a sense of camaraderie. Regularly remind yourself of the benefits and personal growth associated with completing the course successfully.

8. Seek Support and Clarification

Don’t hesitate to seek support or clarification when needed. Reach out to your instructors for guidance or clarification on course material. Utilize online discussion forums to ask questions or engage in collaborative problem-solving. Leverage the support services provided by your course platform or institution, such as technical support or academic advising.

Conclusion

Online courses present unique opportunities for self-paced learning and personal growth. By setting clear goals, creating a productive study environment, actively engaging with course materials, and managing your time effectively, you can maximize your chances of acing online courses. Remember to stay motivated, seek support when needed, and make the most of the available resources. Embrace the flexibility and adaptability of online learning to achieve your educational goals.