b$.$ Mr$.$ Martin Smith has purchased a $$500,000$ house. He will put up $$100,000$ as down payment

and agreed to pay off the rest with a $8$ year mortgage. He will pay this mortgage using $8$ equal

annual payments at a rate of $10\%$ per annum. First payment will be made at the end of the first

year.

i$.$ Calculate the annual payments on the mortgage. $(7$ marks$)$

ii$.$ Construct a loan amortization schedule for the first $4$ years of this loan $(8$ marks$)$