Suppose you borrow $$35,000$ to buy your new Lexus and plan to finance it over five years $(60$ monthly payments$)$

at a nominal rate of $r=4\%$ per year compounded monthly.

a$)$ Work up an amortization of the loan using Excel.

b$)$ What is the balance due just after making the ${24}^{th}$ payment? Show that this is the PW of the remaining

payments.

c$)$ What is the principal portion of the last payment?