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This video tutorial for Howard Community College covers how to construct an amortization schedule for a loan. The example used is a $15,000 loan at a 4.5% interest rate, compounded monthly, with payments over three years. The process begins with calculating the monthly payment, which is determined to be $446.20. Additionally, the interest rate for each payment period is calculated by converting the annual interest rate of 4.5% into decimal form (.045) and dividing by the number of compounding periods per year (12, for monthly payments). This sets the stage for creating the amortization table.