This project focuses on the various aspects of building and analyzing an amortization schedule for retiring a loan.

The object is for the student to demonstrate their understanding of the Mathematics of Finance equations and their skills using Microsoft Excel for creating business reports. The content of the analysis is a computation of the payments and interest over time arising from the acquisition of a loan.

Special emphasis should be made to understand the mathematical relationship that exists in regards to the analysis of an amortized loan with consideration given to the balance, payment, interest, and final payment, observing the effects of changing interest rates and terms of the loan.

Model

Inputs:

Principal $=$$$100,000\mathrm{.}00$ Periods to show on amortization schedule:

Interest $=,7\%$ Beginning Period $=$

Term $=20$ years

Ending Period $=$

$240$

Periods $=12$ per year

Outputs:

Payment$=$ $$????????$

Final

Payment$=$ $$????????$

Partial Amortization Schedule

$\backslash$table$[[$Beginning period,Ending Balance,Payment,Interest,Principal,Balance$],[1,$$$100,000\mathrm{.}00,$$$????.??,$$$????.??,$$$????.??,$$$????.??$