cost of vehicle is $35,000, the interest rate is 6%, loan for three years. van is to be repaid in three equal installments. payments due at end if each year.

Requirements 1 Complete the data table. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. 2 Using the present value of an ordinary annuity table, calculate the payment amount and complete the amortization schedule. Use the effective interest amortization method. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. 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 beginning of the third year. c. Use absolute cell references and relative cell references in formulas. Use absolute cell references C6 and C19 only to calculate interest expense and payment calculations. 3 Using the Excel PMT function, calculate the payment amount and complete the amortization schedule. Use the effective interest amortization method. a. The PMT function calculates a payment amount that results in a negative number. Reverse this to a positive number for calculations in the amortization schedule. 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 beginning of the third year. c Use absolute cell references and relative cell references in formulas. Use absolute cell references C6 and C39 only to calculate interest expense and payment calculations. Requirement 1 Complete the data table. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. DATA Loan Amount Interest Rate Periods om in n Requirement 2 Using the present value of an ordinary annuity table, calculate the payment amount and complete the amortization schedule. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. Use the effective interest amortization method. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab, you will be marked wrong.) 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 beginning of the third year. C. Use absolute cell references and relative cell references in formulas. Use absolute cell references only to cells C6 and C19 for interest expense and payment calculations Payment (using PV table) Present Value of an Ordinary Annuity of $1 a Period Beginning Balance Principal Payment Interest Expense Total Payment Ending Balance 6% 10% 2 0.9434 1.8334 2.6730 3.4651 4.2124 2 man in 0.9259 1.78331 .5771 3.31211 .9927 0.9091 1.7355 2.4869 3.1699 3.7908 Total 5 3 Requirement 3 Using the Excel PMT function, calculate the payment amount and complete the amortization schedule. Use the effective interest amortization method. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab, you will be marked wrong.) a. The PMT function calculates a payment amount that results in a negative number. Reverse this to a positive number for calculations in the amortization schedule. 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 beginning of the third year. C Use absolute cell references and relative cell references in formulas. Use absolute cell references only to cells C6 and G9 for interest expense and payment calculations. Payment (using PMT function) immoiminn Period Beginning Balance Principal Payment Interest Expense Total Payment Ending Balance 2 Total Requirements 1 Complete the data table. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. 2 Using the present value of an ordinary annuity table, calculate the payment amount and complete the amortization schedule. Use the effective interest amortization method. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. 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 beginning of the third year. c. Use absolute cell references and relative cell references in formulas. Use absolute cell references C6 and C19 only to calculate interest expense and payment calculations. 3 Using the Excel PMT function, calculate the payment amount and complete the amortization schedule. Use the effective interest amortization method. a. The PMT function calculates a payment amount that results in a negative number. Reverse this to a positive number for calculations in the amortization schedule. 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 beginning of the third year. c Use absolute cell references and relative cell references in formulas. Use absolute cell references C6 and C39 only to calculate interest expense and payment calculations. Requirement 1 Complete the data table. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. DATA Loan Amount Interest Rate Periods om in n Requirement 2 Using the present value of an ordinary annuity table, calculate the payment amount and complete the amortization schedule. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. Use the effective interest amortization method. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab, you will be marked wrong.) 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 beginning of the third year. C. Use absolute cell references and relative cell references in formulas. Use absolute cell references only to cells C6 and C19 for interest expense and payment calculations Payment (using PV table) Present Value of an Ordinary Annuity of $1 a Period Beginning Balance Principal Payment Interest Expense Total Payment Ending Balance 6% 10% 2 0.9434 1.8334 2.6730 3.4651 4.2124 2 man in 0.9259 1.78331 .5771 3.31211 .9927 0.9091 1.7355 2.4869 3.1699 3.7908 Total 5 3 Requirement 3 Using the Excel PMT function, calculate the payment amount and complete the amortization schedule. Use the effective interest amortization method. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab, you will be marked wrong.) a. The PMT function calculates a payment amount that results in a negative number. Reverse this to a positive number for calculations in the amortization schedule. 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 beginning of the third year. C Use absolute cell references and relative cell references in formulas. Use absolute cell references only to cells C6 and G9 for interest expense and payment calculations. Payment (using PMT function) immoiminn Period Beginning Balance Principal Payment Interest Expense Total Payment Ending Balance 2 Total