If I'm at period 1, I've already paid this up.

How many more left?

Four left.

So n is 4 and interest rate is 10%, and how many am I paying, $26,380.

So $83,620 is very easy to do if you recognize that.

So how would you do the next column?

It's $65,603.

How will you do it?

We'll just make n 3.

So you see what I'm saying?

What I'm saying is, the simplest thing in finance is,

don't get hung up on the past.

Whenever you are asked about value of anything, whether you owe it or

you're getting the value, look to the future and the problem becomes trivia.

Why?

Because if you know all these value, these are just 10% of this.

So this is just 10% of this row, and then this is just,

these two added together is this.

So, if I add these two, I get this.

So I can do this in a second as opposed to doing it over an amortization table.

So one more time, if I were to ask you to do this problem all over again,

what would you do?

You won't use any prompt, only Excel to solve the problem,

so if I asked you how much do you owe in a particular year to the bank.

Which is a very good question to ask, you will just do one.

You will time travel, right, you remember my tricks, jumps across two buildings,

first time is not successful but that's life.

But then manages to jump across, right?