This Project will allow you to show your individual proficiency in applying Excel to financial concepts that you should have already mastered – time value of money. It will be an “individual” assignment. You should use the formulas and link to the appropriate cells when possible (i.e., when I click on a cell, I should be able to see the cells you reference). Failure to do so will result in a grade of 0%. You must submit a digital Excel file of your completed Excel assignment on Canvas. Instructions: Establish loan amortization schedules for the following loans to the nearest cent. You can use the built-in PMT function in Excel, or you can calculate the payments using the annuity formula:
(A) Kayti Schumann has just moved to Denver and is buying her first condo for $196,000. She is putting 20% down, and will finance the balance with a 25-year mortgage loan of 8.7% annual compound interest rate with equal installment payments at the end of each year. Hint: If you set up the amortization schedule correctly using absolute cell references ($), you should be able to “copy” the row containing Year 2 information down through the remaining years. (4 points)
(B) Josh White is purchasing a 2018 Mercedes-Benz C350. He will have a 36-
month loan of $46,300 with equal installment payments at the end of each month. The annual interest rate is 6.0%. (4 points)
(C) As time progresses, what is happening to the portion of the installment
payment that is contributing to interest? As time progresses, what happens to the portion of the installment payment that is contributing to principal? (4 points)