Consider a $2,750,000 fully amortized loan with a term of 7 years and a fixed interest rate of 6.5%. Payments are made on an annual basis.

a) Calculate the annual payments for the loan.

b)  Construct the amortization schedule for the seven years?

                                               

Chris Columbus bought an equipment for his production business for $993,000. He put 15% down and obtained an interest-only loan for the balance at 8% annually for 5years.

c)  Find the amount of Chris's annual interest payments?

d)  Find the total interest paid and total payments made by Chris over the five?