a. Set up an amortization schedule for a $25,000 loan to be repaid in equal installments at the end of each of the next 5 years. This interest rate is 10%.
b.How large must each annual payment be if the loan is for 50,000? Assume that interest rate remains at 10% and that the loan is still paid off over 5 years
c. How large must each payment be if the loan is for 50,000, the interest rate is 10%, and the loan is paid off in equal installments at the end of each of the next 10 years? This loan isfor the same amount as the loan in part b, but the payments are spread out over twice as many periods. Why are these payments not half as large as the payments on the loan I part b,