Compound Interest and Amortization

ABC Business borrows $$75,000$ from a bank at a rate of $8\%.$ The loan is for $5$ years, and payments are made annually. Fill out the following table to show the amortization schedule for the life of the loan.

Year Payment Principal Interest Balance

Totals

Chapter $8$

XYZ Business has the option between:

$1.$ A $5-$year loan for $$100,000$ with a $10\%$ interest rate. OR

$2.$ A $10-$year loan for $$100,000$ with a $5\%$ interest rate.

Which should they choose?