Exercise C10E: You are going to create a statement, by hand, which displays the information for…

Exercise C10E: You are going to create a statement, by hand, which displays the information for the first five months of a 5 year loan. You may NOT use the TVM Solver or Excel. If done correctly, the statement layout will look something like Table 1 on page 449. The table that you create will have the following five columns: Payment number, Payment amount, Interest, Amount applied to principal, and Unpaid balance (the Unpaid balance is the amount that you still owe on the principal). Fill in the appropriate values in each of the columns for each payment made. You borrow $25,500 from a bank on January 1, 2013. The ban is for 5 years at 3.5% interest compounded monthly. During the entire length of the loan, you only make the mandatory monthly payments of $463.89. Create a statement that shows the information about the loan (payment number, payment amount, interest, amount applied to principal, and unpaid balance) for only the first five months of the loan. Note that you should have a balance of $23,541.04 for payment #5 on 6/1/2013.