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In this tutorial, the presenter demonstrates how to build an amortization table in Excel from scratch. Starting with a loan amount of $100,000 and a period of 30 years, the presenter emphasizes the need to account for monthly payments, resulting in 360 periods. A 13% annual interest rate is converted to a monthly rate by dividing by 12. The presenter then explains the calculation of the monthly payment using Excel’s PMT function, specifying the rate, total periods, present value (loan amount) with a negative sign to avoid a negative payment value, and a future value of zero. The tutorial aims to guide users in creating their amortization tables effectively.
