Your goal in this project is to construct one master amortization schedule. At the top of your master schedule,

you should list all input variables, including: initial loan balance, term of loan $($in years$),$ initial interest rate,

separate index values for years $4$ through $10,$ and an index value for years $11+.($For convenience, we assume

that the rate that applies for a loan$$s eleventh year will continue to apply until that loan matures$).$

BFIN $421$ Project $1$ Spring $2025$

You should also include cells for the balloon payment $($if the loan has a balloon payment, entering $$0$ if not

applicable$)$ and for any points on the loan $($stated as a percentage to three decimal points, entering $0\mathrm{.}000\%$ if not

applicable$).$ Do not include any calculations in your $$input variables$$ section.

You will need nine interest$-$rate cells, one for the initial three years of the loan term, one for each of years $4$

through $10,$ and one more for years $11$ and after. This will allow you to change the interest rate assumptions,

depending on the type of loan. If the loan is fixed$-$rate, just type the fixed rate into all of the interest rate input

cells. If the loan is a $3/1$ ARM loan, type the starting rate into the cell for years $1-3,$ then enter unique rates into

the cells for years $4$ to $10$ and $11+.$ If the loan is a $5/1$ ARM loan, then the initial rate will apply for the first $5$

years, and the rate for years $6$ through $30$ will be based on the index that prevails at that time $($as described later

in the instructions$).$

The amortization schedule should include the following columns:

$(1)$ Time should start at t $=0$ and continue through t $=360.$ Loan terms are generally never longer than $360$

months. Of course, you need to show time $0,$ for cash$-$flow purposes. But, obviously, the time$-0$ line

should not be part of your loan amortization schedules.

$(2)$ Beginning balance is the loan balance at the beginning of the period.

$(3)$ Applicable annual rate $($for calculating payments, etc.$)$: I want you to include an additional column in

the schedule that shows the annual interest rate that is expected to prevail at each future period in time $($t

$=1$ through $360).$ You do not need to put any IF functions into your Annual Rate column. You should

just absolute$-$reference the rate for months $1-12$ to the appropriate input cell, the rate for months $13-24$