1.) Repayment of a loan requires the periodic payment of interest and principal. You are interested in the amount of principal you pay in the 60th period of a loan. We can use the PPMT (rate, per, nper, pv, [fv], [type]) function for this purpose. Assume the following parameters for the loan and PPMT function:

rate = 40% (annual rate - don't forget to divide by 12 in PPMT function to match monthly input data -- per, nper)

per = 60th month

nper = 360 month

pv = $150,000

Create a two - way data table for the calculation of the principal payment for the 60th period for a variety of annual interest rates (rate = 4.0 to 6.5%, 0.5% increments as row value) and present values of the loan (pv = 150,000 to 250,000, in 25,000 increments as column value).

Format results such that you have two decimals (123.45).

(Hint: Your principal in the 60th period should be $438.35 for the data above).

rate=	0.0400
per=	60
nper=	360
pv=	250000
PPMT==>
				Interest
Principal