AJ enters Baylor as a freshman, planning to major in accounting. On this same day he signs a five year, 10% note payable to a local car dealer for a $40,000 model Jeep. Payments are to be made at the end of each year for the five-year period.

A) Compute the amount of the annual payments (should be more than $8,000)

B) Prepare an amortization schedule showing annual payments, interest, principal reduction and carrying value of the loan at the end of each year, including relevant column totals

C) Show cell equations.