Final answer:
The question seeks to calculate the cumulative principal payments for year 1 with the CUMPRINC function, which requires the interest rate and total payment periods, not given in the scenario. '0' as the type argument indicates payments are at period's end.
Step-by-step explanation:
The student is asking how to calculate the cumulative principal payments for year 1 using the CUMPRINC function in a spreadsheet software like Microsoft Excel. The function's arguments will include the rate of interest, total number of periods, present value of the loan, start period, end period, and payment type.
Given the provided scenario of future payments ($15 million in present, $20 million in a year, and $25 million in two years), we would need additional information such as the loan's interest rate and the total number of payment periods to use the CUMPRINC function accurately. Unfortunately, without this information, we cannot provide a specific answer. However, it is important to note that '0' for the type argument indicates that payments are made at the end of the period.