Fictional assignment
Build a borrowing comparison for Quarry Workshop.
The finance coordinator needs a monthly payment and total interest for three fictional loan offers, then the first twelve periods of an amortization schedule for offer A. A separate offer has a zero rate, so the model must handle it.
All records and amounts are fictional practice data. Deliver the completed workbook and a formula-based answer that updates when the inputs change.
A borrowing comparison needs matching time units. An annual rate becomes a monthly rate by dividing by 12, and a term in years becomes months by multiplying by 12. PMT returns a payment with the opposite sign to the loan balance. Supplying a negative principal makes the displayed payment positive.
Build the comparison first, then split the first offer's payments into interest and principal. IPMT and PPMT use the same rate and term as PMT, plus the period number. The remaining balance subtracts cumulative principal repayments. A zero-rate offer is a useful check: its payment should be principal divided by the number of months. All amounts here belong to a fictional training scenario.