In cell F$8$ use the IPMT function to calculate the Amount of Interest on Loan in Year $1.$ Rate, Nper and PV parameters are available in the PURCHASE DATA section $($keep in mind that the rate is annual, and you are making only one payment a year$).$ The PER parameter is available in cell F$3.$ Please make sure you use the absolute and relative referencing appropriately, as you will copy the formula in cell $F8$ to cells G$8$:I$8$ in the next step.

Copy the formula in cell $F8$ to cells G$8$:I$8$

The Excel DB function returns the depreciation of an asset for a specified period. The calculation is based on the initial asset cost, salvage value and the number of periods over which the asset is depreciated. We will use the DB function to calculate the depreciation value of the fleet for each of the $4$ years of the loan.

$10.$ In cell F$9$ you will calculate the depreciation value of the fleet in Year $1$ using the DB function. In cell F$9$ type ${?}^1$ the following:

$=-DB($

and then click on the $fx$ button: