Fill in the yellow-highlighted blanks in the attached workbook, following the instructions found in the workbook. If you fill in the yellow blocks correctly, then the answer to the question of how much interest Jenny will save by paying off the loan early will be automatically calculated.

A few of the numbers in the table have been filled in to give you some check numbers. Use the CUMIPMT function and the CUMPRINC function to solve for the interest and principal payments in the first part of the problem. In the second part of the problem where Janette pays $37,000 per year for years 1,2,3,&4 you will have to do the calculations manually but just remember that the banker subtracts the interest due from the payment and then applies everything you send above the required interest against the outstanding principal of the loan. BTW, that's exactly how your credit card works as well.

Janette borrowed $120,000 from an angel investor to fund her expansion into South Dakota. The loan 10% simple interest on the declining balance. The terms of the loan require that she make equal paymi over five years to completely amortize the loan. Janette can deduct the interest portion of each of the annual loan payments for income tax purposes, so she wants to know the projected interest payments per year. Help Jane out by constructing a loan amortization table. I have added some of the numbers in for you as check numbers. Begin Loan Balance $120,000.00 Payment at End of Year Interest Portion Principal Portion Ending Loan Balance $7,872.30 $23,783.39 $0.00 Total Interest: $7,872.30 What if Janette decided to pay off the investment early and instead of the minimum required payment she paid $37,000 in years 1, 2, 3, and 4 and then paid the outstanding balance plus accrued interest at end of Year 5. Assuming that there is no penalty for early payment, how much interest would she pay each year? (Hint: annual interest is always 10% of the beginning of year loan balance) Begin Loan Balance $120,000.00 Payment at End of Year $37,000.00 Interest Portion $12,000.00 Principal Portion Ending Loan Balance $0.00 Total Interest: Interest saving: $12,000.00 ($4,127.70)