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In this tutorial, the presenter demonstrates how to create an amortization table in Excel. They begin with a borrowed amount of $100,000, scheduled over 30 years (360 periods) with monthly payments. The interest rate is set at 13%, which is converted to a monthly rate by dividing by 12. The monthly payment calculation is performed using Excel's PMT function, which requires the rate, total periods, present value (the loan amount), and future value (set to zero). The payment result is adjusted by adding a negative sign to prevent a negative output from Excel. The tutorial guides viewers step-by-step in setting up their amortization table.
