In cell G9, enter a formula using the CUMIPMT function to calculate the cumulative interest paid on the loan
Now Hwan is ready to calculate the annual principal and interest payments for the startup loan. Start by calculating the cumulative interest payments as follows:
a. In cell G9, enter a formula using the CUMIPMT function to calculate the cumulative interest paid on the loan for Year 1 (payment 1 in cell G7 through payment 12 in cell G8). Use 0 as the type argument in your formula because payments are made at the end of the period.
b. Use absolute references for the rate, nper, and pv arguments, which are listed in the range D6:D12.
c. Use relative references for the start and end arguments.
d. Fill the range H9:K9 with the formula in cell G9 to calculate the interest paid in Years 2–5 and the total interest.
