Loan Consolidated Incorporated? (LCI) is offering a special? one-time package to reduce Custom? Autos' outstanding bills to one? easy-to-handle payment plan. LCI will pay off the current outstanding bills of $240,000 for custom Autos if Custom Autos will make an annual payment to LCI at an interest rtae of 10 % over the next 5 years.
a. What are the annual payments of the? loan?
b. What is the amortization schedule for this loan if Custom Autos wants to pay off the loan before the loan maturity in 5 ?years?
c. When will the balance be half paid? off?
d. What is the total interest expense on the loan over the 5 years?