Rework below problem assuming that the loan agreement calls for a principal reduction of $18,000 every year instead of equal annual payments.
Refer to problem below:
Prepare an amortization schedule for a three-year loan of $54,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan?