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In this YouTube tutorial, the narrator demonstrates how to create an amortization table in Excel from scratch. Starting with a borrowed amount of $100,000 over a 30-year period, they calculate monthly payments by adjusting the annual interest rate of 13% to a monthly rate. Using the PMT function in Excel, they input the rate, period, present value, future value, and get the monthly payment. This process allows for the creation of an effective payment plan.