6. An amount of $15,000 is borrowed from the bank at an annual interest rate of 12%.

a. Calculate the equal end-of-year payments required to completely pay off the loan in four years.

b. Calculate the repayment amounts if the loan ($15,000)

will be repaid in two equal installments of $7,500 each, paid at the end of second and fourth years respectively.

Interest will be paid each year. Develop the tables similar to those in Table 4- 1.