The time$-$period is $4$ annual periods to limit the number of calculations you need to perform. As discussed in class, most mortgage type loans are for $36$ or $48$ months $($car loans or leases$)$ or $360$ months $($home mortgages$).$ You need to borrow $$100,000$ from a bank. The bank will lend you funds at a $7\%$ rate per annum. If the loan is a mortgage type loan that must be repaid over $4$ years, what is the loan payment per year? $($For this question, cut and paste a screenshot from your financial calculator$).$

Now build a table that shows the following over the $4$ years: beginning loan balance, total loan payment $($the annuity calculated above$),$ interest at $7\%$ on the beginning loan balance, the amount of principal paid down $($the difference between the annuity and interest for that period$)$ and the ending loan balance. This table should be built in an Excel spreadsheet. You should cut and paste the spreadsheet into your solution. What are your total loan payments over the four years? How much is interest vs$.$ principal? Hint: simply sum the columns in annuity payment, interest and principal over $4$ years. Hopefully it is intuitive that the sum of the principal payments is equal to the amount you borrowed $$100,000).$ Please be sure to answer all elements of this question.