Example The following example, including the amortization table, calculations and answered questions, will model how the project could be completed. You are borrowing $6,000 at 10.5% to be paid over a one year period. 1) Calculate the monthly payment (to the nearest dollar) using the Casio calculator steps shown in Lesson 6: Monthly Payment = $524 n =12 1% = 10.5 PV = 6000 PMT = 0 FV = 0 . P/Y = 12 C/Y =122) Create a table having the required headings. Version 1 - TVM Casio Calculator A B C D E F G Payment Beginning Monthly Monthly Interest Principle Ending Number Monthly Payment Interest Paid Paid Monthly Principle [calculated Rate [monthly [monthly Balance Balance by TVM [annual interest payment [beginning lending Program] interest rate, (C) - principle balance rate/12: 0.00875 interest (B) - of 0.105/12= (D) x paid (E)] principle previous 0.00875] beginning paid (F)] month principle (G) (B) $6,000.00 $524 0.00875 $52.50 $471.50 $5,528.50 2 $5,528.50 $524 0.00875 $48.37 $475.63 $5,052.87 3 $5,052.87 $524 0.00875 $44.21 $479.79 $4,573.08 4 $4,573.08 $524 0.00875 $40.01 $483.99 $4,089.09 5 $4,089.09 $524 0.00875 $35.78 $488.22 $3,600.87 6 $3,600.87 $524 0.00875 $31.51 $492.49 $3,108.38 7 $3,108.38 $524 0.00875 $27.20 $496.80 $2,611.58 8 $2,611.58 $524 0.00875 $22.85 $501.15 $2,110.43 9 $2,110.43 $524 0.00875 $18.47 $505.53 $1,604.90 10 $1,604.90 $524 0.00875 $14.04 $509.96 $1,094.94 11 $1,094.94 $524 0.00875 $9.58 $514.42 $580.52 12 $580.52 $524 0.00875 $5.08 $518.92 $61.60 Using the TVM Program on the Casio calculator, left a $61.60 balance at the end of the last payment. Therefore, the final payment would be $585.60 ($524 + $61.60). This difference is due to rounded calculations within the programExplanations on calculating each column in the Amortization Table: Column A: The Number of Payments is the number of months during the loan period (number of years . 12) Column B: The Beginning Monthly Principle is the ending balance from the previous month (Column F). The interest is compounded every month based upon the balance remaining from the month before. The beginning monthly balance for the first payment is the initial principle loan amount. Column C: The Monthly Payment is the calculated monthly payment from the program or calculated using the formula. Column D: Most interest rates for loans are given as an annual or yearly percentage. To calculate the Monthly Interest Rate, divide the decimal equivalent of the annual rate by 12(10.5% 0.105 0.105 0.00875). 12 Column E: The Interest Paid is calculated by multiplying the monthly interest rate by the beginning principle balance for that monthly payment period (multiply: Column D . Column B). Column F: The Principle Paid is the amount of the Monthly Payment (Column B) remaining after the Interest Paid (Column E) is subtracted out. (Subtract: Column B - Column E). Column G: The Ending Principle Balance starts with the beginning principle balance and subtracts only the portion of the monthly payment that is remaining for the principle balance. In other words, the lender is going to take the monthly interest owed first, and then subtract the remaining monthly payment amount from the current balance.Project Create an amortization table for the following situation: You are borrowing $10,000 over a two-year period. The annual percentage rate is 4.5%. You may use the following to complete the table and calculations: Graphing calculator Application spreadsheet (such as MS Excel) The amortization table must include columns for the following information or calculations: Number of payments Beginning of month principle balance Amount of payment Monthly interest rate Interest Paid from Payment Principle paid from Payment Ending Balance After Payment Extra columns for data such as "Date of Payment" and "Cumulative Interest" can be included. Calculate the Monthly Payment: On the Casio calculator, use the TVM Program to calculate the monthly program. If you have another brand of calculator or an application spreadsheet, use the appropriate functions or programs to calculate the monthly payment. If you are using this method show the values entered into the program or the formulas used in the spreadsheet. For the Casio TVM Program display the entered values for the following: n= 1% = PV = PMT = FV = P/Y = C/Y =Answer the following questions. 1) What is the monthly payment? 2) What is the total amount paid for loan? 3) What is the total interest paid for the loan? Project, including table, may be completed in an electronic or hand-written format. An electronic format is preferred, with organization and neatness being part of the project's grade