Case 12c Business and Property Spreadsheet Project

Amortization problems. Please have the answers in Excel using excel formulas thank you.

Bob and Angelique Mackenzie bought a business for $90,000. They borrowed the money to buy the business at 6.9% compounded semi-annually and are to repay the debt by making quarterly payments of $3645.

1. If Bob and Angelique make a lump sum payment of $10,000 at the end of the fourth year, by how much is the amortization period shortened?
2. How much interest do they save by making the lump sum payment?
3. If Bob and Angelique had made the lump sum payment at the end of the second year instead of the fourth year, how much more money could they save?