1.Set up an amortization schedule for a 5 year, $5 million, 8.5% loan that requires equal end of year payments. Be sure to distinguish between the interest and principal portion of each payment.

2. Using the above information set up another amortization schedule showing equal monthly payments.

a. Discuss of list what can be done to save on interest charges for this loan.

b. WHat is the effective interest rate?( show calculation)