Amortization tables are widely used for home mortgages, auto loans, business loans, retirement plans, etc. Use a spreadsheet for setting up an amortization table for the following auto loan. Construct an amortization schedule for a $10,000, 4% annual rate loan with 12 equal monthly payments.

Step 1: Find the Required Monthly Payment

• PMT(rate,nper,pv,fv,type)

Step 2: Find the Interest Due at the end of Month 1

• INT = Beg bal * (I)

Step 3: Find the Principal Repaid at the end of Month 1

• PRIN = PMT INT

Step 4: Find the Ending Balance at the end of Month 1

• END BAL = BEG BAL PRIN

Constructing an Amortization Table:

Repeat Steps 1-4 Until End of Loan