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Requirement
Using the present value of an ordinary annuity table, calculate the payment amount and complete the amortizatic
Use the effective interest amortization method.
a. Calculate the loan payment by dividing the loan amount by the appropriate present value factor.
b. Round values to two decimal places. Calculate the interest expense in the third year as the loan payment minus the loan balance at the begin.
c. Use absolute cell references and relative cell references in formulas.
Payment(using PV table) $13,093.90
Period
Beginning Balance
Principal Payment
Interest Expense
Total Payment
Ending Balance
0
$ 35,000.00
1
$10,993.84
$2,100.00
$13,093.84
$ 24,006.16
2
24,006.16
$11,653.47
$1,440.37
$ 12,352.68
3
12,352.68
$12,352.68
$741.16
$ -
Total
$35,000.00
$4,281.53
$39,281.53
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