Patrick’s Delivery Services is buying a van to help with deliveries. The cost of the vehicle is $35,000, the interest rate is 6%, and the loan is for three years. The van is to be repaid in three equal installment payments. Payments are due at the end of each year.

Requirements
1. Complete the data table.
2. Using the present value of an ordinary annuity table, calculate the payment amount and complete the amortization schedule.

a. Calculate the loan payment by dividing the loan amount by the appropriate present value factor.
b. Round values to two decimal places and ignore rounding errors on the last payment.
c. Use absolute cell references and relative cell references in formulas.

3. Using the Excel PMT function, calculate the payment amount and complete the amortization schedule.

a. The PMT function calculates a payment amount that results in a negative number. Reverse this to a positive number for calculations in the amortization schedule.
b. Round values to two decimal places and ignore rounding errors on the last payment.
c. Use absolute cell references and relative cell references in formulas.