Now Pranjali is ready to calculate the annual principal and interest payments for the medical van. Start by calculating the cumulative interest payments as follows:

In cell C17, enter a formula using the CUMIPMT function to calculate the cumulative interest paid on the loan for Year 1 (payment 1 in cell C15 through payment 12 in cell C16). Use 0 as the type argument in your formula because payments are made at the end of the period.

Use absolute references for the rate, nper, and pv arguments, which are listed in the range D5:D11.

Use relative references for the start and end arguments.

Fill the range D17:G17 with the formula in cell C17 to calculate the interest paid in Years 25 and the total interest.

Mount Moreland Hospital - Neighborhood Nurse Van Loan Conditions and Payments