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1) Today you borrow 12,000 for 5 years. The bank lends you this money with an interest rate of 7%. What would be the interest

1) Today you borrow 12,000 for 5 years. The bank lends you this money with an interest rate of 7%. What would be the interest expense each year on this fully amortized loan?

2) You are in the leasing business and have 20,000 asset to lease. If you require a 12% return on your asset, and the lease term is 9 years, how much would the lease payment be at the beginning of each year?

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