Rework Problem 58 assuming that the loan agreement calls for a principal reduction of $4,000 every year instead of equal annual payments.

Data from Problem 58

Prepare an amortization schedule for a five-year loan of $20,000. The interest rate is 12 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?