An advertisement for specialized equipment states that the list price of the equipment is $ 65,000. It requires assuming a promissory note for five years and an interest rate of 9% per year. The promissory note stipulates an annual payment of $ 14,980. The first payment will be made one year after purchasing the equipment.

Assume that the equipment from the previous exercise actually has a market value of $ 70,000. $ 14,980 will be paid annually for five years. 1. What is the true interest rate on this note? 2. Use Excel to prepare the amortization table for the promissory note. 3. How much will the debt balance be after making the third annual payment?