All right, so time to calculate the interest payment using this formula, all the values have been
taken from the last lecture, so I'll be applying the formula equals I BMT, which stands for interest
payment.
And now the first argument is expecting from me is the rate of interest.
So I will be giving the rate of interest.
And then beyond that is the period and an end product or number of periods for which the installments
are due and then present value that this year we have a future value of will ignore.
And I will press euro for the end of the period and then control enter.
And here we have the interest payment for the first period.
And you can see actually interest payment in the first period was supposed to be six thousand and no
other logged the cells that should be locked.
So except a nine, I'm going to lock all of them and now I will copy and paste these values to all of
the cells below.
And you can see that the interest has been calculated for all the different years.
So if I can just check two, three of them.
So your two, the interest is five, six, five it here we have.
And if I go to the last one, that is nine forty eight.
So I have the same one that is nine forty in order decimals here.
Other than that the complete values are the same.
So this way you can calculate the interest payment for any particular year using the short Excel formula.
You don't have to make the complete Excel schedule.
You don't have to work out all ten years.
You can just take any single year period and you can calculate the interest payment or the principal
payment or the overall installment amount.
I hope that is helpful.