Suppose you get a mortgage loan of $30,000 to be repaid in 360 months (i.e. in 30 years).
a) Using the mortgage calculator spreadsheet available on VISTA, produce a graph which displays, for each month, the amount of repaid principal (also called normal paydown) and the interest paid when the nominal mortgage rate is r = 5.33% compounded monthly. (You may want to understand the spreadsheet first). explain how you modified the formulas in the spreadsheet.
b) Suppose now that the loan is repaid on a semiannual basis. Add a new sheet to the Excel file, and produce a graph which displays, for each semi-annual period, the amount of repaid principal and the interest paid when the nominal mortgage rate is r = 5.33% compounded semi-annually.