1. Tanya is trying to prepare her loan amortization schedule for the renovation of her bed-and- breakfast facility. Her banker is quoting her an interest rate of 12% for four years. The loan amount is $25,000. Prepare the loan amortization schedule.
2. Juan would like to add a shuttle service for his hotel guests to nearby shopping centers. The van has a price tag of $35,000. His bank will give him a loan for $25,000 at only 6% interest, compounded monthly, if Juan pays $10,000 as a down payment. What is Juan’s loan amortization schedule for the first five months?
3. What will be the total interest expense that Tanya (exercise 4) and Juan (exercise 5) will have to pay for their loans over the entire term?