12.Betty borrows $60,000 at 12 percent compounded annually. The loan is to be repaid in five equal annual end-of-year installments.

How much must each loan payment be?

How much interest will be paid in year 2 of the loan? You must create an amortization table to support your answer.

26.

In order to send your first child to Law School when the time comes, you want to accumulate $40,000 at the end of 18 years. Assuming that your savings account will pay 6% compounded annually, how much would you have to deposit if:

a. you want to deposit an equal amount at the end of each year?

b. you want to deposit one large lump sum today?