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Module Assignment - Loan Amortization Table
You work for We Build the World Manufacturing Inc. The company has decided to get a three year loan to purchase a high end lathe for $1M. The current interest rate is 6%. Your job is to calculate the monthly interest payments by building a loan amortization table.
The model should have three areas:
1. Documentation: Explaining the purpose of the model2. Input; There are three inputs required for this model, annual interest rate, number of months of the loan, and the loan amount3. Formula/Output Area: As shown on the example for a $500 loan for twelve months, the inputs are feeding the calculations in the
Formula/Output Area.
Answer the following questions:
• Assuming the original assumptions, how much in interest will the organization pay over 3 years?
• If the interest rate drops to 3%, what impact does that have on interest payments?
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