Your company took out an amortizing loan with the following terms:

	A	B
1	Amount	8,000
2	Term (years)	30
3	Interest rate	2%

Part 1

What is the annual payment on the loan (as a positive number)? Use Excel's PMT() function.

	A	B	C
1	Amount	8,000
2	Term (years)	30
3	Interest rate	2%
4	Annual payment	357.2	=PMT(B3,B2,-B1)

The function is: PMT(rate, nper, pv)

Enter the present value of the loan (the loan amount) as a negative number to get a positive payment, or vice versa.

Part 2

Create an amortization table in Excel. What is the outstanding balance at the end of the first year?

Part 3

What is the outstanding balance at the end of year 20?

Part 4

What is the outstanding balance at the end of year 30?