A loan of 140,000 for 20 years is amortized in the conventional way with annual payments at the end of each year. Interest is 5 percent effective.

A) calculate the balance of the loan at the end of the 5th, 10th and 15th year.

B) redo the problem but this time, pay off the loan via the constant principle method. Compare the total interest paid by this method to the total interest 1 paid by the conventional amortization method. Explain briefly why I did not ask you to calculate the balance of the loan at the end of the 5th, 10th and 15th year.

please hand-write or type out work, not using a spreadsheet