Luke borrows $800 000 from a bank to set up a medical practice. He agrees to...

Hello,

The answer are as below

1) Monthly Payment = $10,661

2) Principal payment in First Installment: $3,861

3)   Principal payment in First Installment: $10,571

Please refer to below snapshots for detail solution. Please note, few rows are hidden so that all answers can be see in one frame. All 3 answers are highlighted in yellow.

1 Annual Interest Rate Monthy Interest Rate 10.20% 0.85% Years 10 Efffective No. of Periods PV 120 $800,000 $10,660.86 PMT Year Opening Interest Rate Interest Payment Principal Closing 1 $800,000 0.9% $6,800 $10,661 $3,861 $796,139 2 $796,139 0.9% $6,767 $10,661 $3,894 $792,245 3 $792,245 0.9% $6,734 $10,661 $3,927 $788,319 4 $788,319 0.9% $6,701 $10,661 $3,960 $784,359 5 $784,359 0.9%'$6,667 $10,661 $3,994 $780,365 6 $780,365 0.9% $6,633 $10,661 $4,028 $776,337 7 $776,337 0.9%'$6,599 $10,661 $4,062 $772,275 8 $772,275 0.9%'$6,564 $10,661 $4,097 $768,178 9 $768,178 0.9% $6,530 $10,661 $4,131 $764,047 10 $764,047 0.9% $6,494 $10,661 $4,166 $759,881 111 $101,790 $865 $10,661 $9,796 $91,994 112 $91,994 0.9% $782 $10,661 $9,879 $82,115 113 $82,115 0.9% $698 $10,661 $9,963 $72,152 114 $72,152 0.9%' $613 $10,661 $10,048 $62,105 115 $62,105 $528 $10,661 $10,133 $51,972 116 $51,972 $442 $10,661 $10,219 $41,752 117 $41,752 $355 $10,661 $10,306 $31,446 118 $31,446 0.9% $267 $10,661 $10,394 $21,053 119 $21,053 0.9% $179 $10,661 $10,482 $10,571 120 $10,571 0.9% $90 $10,661 $10,571 $0 ο ο ο ο

Annual Interest Rate 0.102 Monthy Interest Rate =C3/12 Years Efffective No. of Periods =C5*12 PV =F3 PMT --PMT(C4,C6,c7) -15 =F7*G7 =17 -G8 =F9*G9 =18 Year Opening Interest Rate Interest Payment Principal closing 800000 =C4 =F3*G3 =C8 =13-H3 =F3-13 =E3+1 =K3 =G3 -F4*G4 =13 =14-H4 =F4-14 =E4+1 =K4 =G4 '=F5*G5 =14 =15-H5 =F5-J5 =E5+1 =K5 '=F6*G6 =16-H6 =F6-16 =E6+1 =K6 =17-H7 =F7-17 =E7+1 =K7 =G7 '=F8*G8 =18-H8 =F8-18 =E8+1 =K8 =19-H9 =F9-19 =E9+1 =K9 =G9 =F10*G10 =19 =110-H10 =F10-J10 =E10+1 =K10 =G10 =F11*G11 -110 =111-111 =F11-J11 =E11+1 =K11 =G11 =F12*G12 =111 =112-H12 F12-J12 =E112+1 = 112 =G112 =F113*G113 =1112 =1113-H113 =F113-J113 =E113+1 =K113 =G113 =F114*G114 =1113 =1114-H114 =F114-J114 =E114+1 =K114 =G114 =F115*G115 =1114 =1115-H115 =F115-J115 =E115+1 =K115 =G115 =F116*G116 =1115 =1116-H116 =F116-J116 =E116+1 =K116 =G116 =F117*G117 =1116 =1117-H117 =F117-J117 =E117+1 =K117 =G117 -F118*G118 =1117 =1118-H118 =F118-1118 =E118+1 = 118 =G118 =F119*G119 =1118 =1119-H119 =F119-J119 =E119+1 =K119 =G119 =F120*G120 =1119 =1120-H120 =F120-J120 =E120+1 =K120 =G120 =F121*G121 =1120 =1121-H121 =F121-J121 =E121+1 =K121 =G121 =F122*G122 =1121 =1122-H122 =F122-1122