Hi I need help with the below question. Basically how it will be set up in excel to give the answer. I need the explanation on how the answer was derived. So showing each step would be great.

How would you automate a financial model for this scenario? Explain or show us your work.

A loan that was 3 years interest only, then converted to a fully amortizing loan for 5 years with principal paydowns of $3,000 that were occurring throughout the whole time?

Principal: $500,000 Interest only: 4%Term: 3 Years Paydowns: $3000 (meaning that $3,000 additionally is being paid toward the principal each month)

Fully Amortizing Interest: 7%Term: 5 years Paydowns: $3000 (meaning that $3,000 additionally is being paid toward the principal each month)