On September 1, 2014 Benson Inc. borrowed $756,000 by signing a four-year installment note bearing interest at 9%. Complete the installment note amortization schedule for this note assuming each payment requires equal total payments. Use the built-in PV functions for these calculations. Enter PV(n;i) in a value box to calculate the present value of $1 over n compounding periods with a periodic rate of i. Similarly, use PVA(n;i) to calculate the present value of an annuity. E.g., the present value of $1,000 with a periodic rate of 3%, and 2 compounding periods can be entered as 1000*PV(2;3). To use the built-in PV functions to calculate the payment, the formula is: Principal balance ÷ PVA(n;i), where n = the number of payments and i = the interest rate. For example, if $10,000 is borrowed by signing a four-year, 5% installment note. The note requires four equal payments of accrued interest and principal. Each of the four equal payments is calculated by entering the following in the value box: 10000 / PVA(4;5), which equals payments of $2,820.

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