A B C D E F G H J K L M 1 Final Prob. 1) Repayment of a loan requires the periodic payment of interest and principal. You are interested in the amount of principal 2 you pay in the 60th period of a loan. 3 A. We can use the PPMT(rate, per, nper, pv, [fv], [type]) function for this purpose. Assume the following parameters for the loan and 4 PPMT function: 5 6 rate = 2.75% (annual rate--don't forget to divide by 12 in PPMT function to match monthly input data--per, nper) 7 per = 60th month nper = 360 month 8 pv = $200,000 9 (Hint: Your principal in the 60th period should be $409.94 for the data above). 10 11 B. Create a two-way data table, using the Table function, for the calculation of the principal payment for the 75th period for a variety of 12 annual interest rates (rate=2.75% to 5.25%, 0.5% increments as row value) and present values of the loan (pv=200,000 to 350,000, in 13 25,000 increments as column value). Format results such that you have 2 decimals (123.45). 14 C. Create a two-way data table, using absolute and relative references, for the calculation of the principal payment for the 60th period 15 for a variety of annual interest rates (rate=3.50 to 6.00%, 0.5% increments as row value) and present values of the loan (pv=200,000 to 16 350,000, in 25,000 increments as column value). Format results such that you have 2 decimals (123.45). 17 18 19 20 21 22 23 24 25 26 27 28 A. rate= 0.0023 29 per- 60 30 nper= 360 31 pv= 200000 32 PPMT==> ($409.94) 33 34 B. Interest 35 36 37 38 Principal 39 40 41 42 43 C. Interest 44 45 46 47 Principal