In the Excel setup of a loan amortization problem, which of the following occurs?
1) To find the dollar interest each month, you multiply the balance times the yearly interest rate.
2) To find the new balance, you subtract the dollar interest from the old balance.
3) The payment is found with = PMT(rate, nper, -pv, fv).
4) To find the principal payment each month, you subtract the dollar interest payment from the fixed payment.