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In this tutorial, the presenter demonstrates how to create an amortization table in Excel. Starting with a loan amount of $100,000 and a term of 30 years, he explains the need to calculate monthly periods by multiplying the years by 12, resulting in 360 periods. He sets the interest rate at 13%, divided by 12 for monthly calculations. The payment is calculated using the PMT function in Excel, where the rate is referenced, the number of periods is set to 360, and the present value is the loan amount, input as negative to avoid a negative payment outcome. The process for calculating the payment is detailed, leading into the creation of the amortization table.
