A)With a present value of $15,000, an interest rate of 8% and a term of five years:

1. Calculate the annual payment.

2. Prepare the amortization schedule based on the annual payment.

B) To buy a bungalow, you have to pay $100,000 for the next 15 years with the interest rate of 9%.

1. What is the present value of these payments?
2. Calculate for each year the loan balance that remains outstanding, the interest payment on the loan and the reduction in the loan balance.