Attempts Do No Harm/2 13. Loan amortization and capital recovery Present value of annuity calculations are widely used for loan amortization and capital recovery problems. Both loan amortization and capital recovery problems require the calculations of annuity payments based on a given required rate of return Suppose you take out a loan. The process in which your Hability will be gradually eliminated through regular payments over time is called capital recovery Ian loaned his friend s25,000 to start a new business. He considers this toan to be an investment, and therefore required his friend to pay him an interest rate of 6% on the loan. He also expects his friend to pay back the loan over the next four years by making annual payments at the end of each year, Ian texted and asked that you help him calculate the annual payments that he should expect to receive to that he can recover his initial investment and earn the agreed-upon 6% on his investment Calculate the annual payment and complete the following capital recovery schedule: Note: Round your answers to two decimals places. lan loaned his friend $25,000 to start a new business. He considers this loan to be an investment, and therefore requires his friend to pay him an Interest rate of 6% on the loan. He also expects his friend to pay back the loan over the next four years by making annual payments at the end of each year, Ian texted and asked that you help him calculate the annual payments that he should expect to receive so that he can recover his inten investment and earn the agreed-upon 64 on his investment Calculate the annual payment and complete the following capital recovery schedule: Note: Round your answers to two decimals places. Year Payment Interest Paid Ending Balance Principal Paid Beginning Amount $25,000.00 1 de N 3 -$0.02