Annuity You are going to borrow money from the bank. But when considering your income, you could afford to spend maximum 4000 euros per year as total repayments . Now, If the loan interest rate is 8% , what would be the maximum loan amount which you can borrow from the bank If the loan has duration of 5 years and the annual loan payment are calculated on the basis of annuity? Find also , what are the second year loan Principal and interest payments.