Create a new workbook in Excel. Please include an input area and an answer area for each problem. You will have an answer for each bullet point. Formatting is up to you. Just make sure it is easy to tell where your answers are, and what equation you used in excel to get the answer.

4. A producer gets a loan to purchase a new piece of equipment for $250,000.

What is the annual principal and interest payment for the loan with annual payments over 20 years at a 6 percent interest rate?

How much (in total) would the producer pay in interest charges over the life of the loan?

What is the annual principal and interest payment for the loan with annual payments over 15 years at a 6 percent interest rate?

How much (in total) would the producer pay in interest charges over the life of the loan?

If the producer paid the equipment off sooner (15 years), how much interest would be saved?