e. Suppose you borrowed $15,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years. How much would you still owe at the end of the first year, after you have made the first payment? What would your answer be if you had borrowed at 5%?

Hints :

Step 1: Find the PMT

Step 2: Find the 1st year's interest

Step 3: Subtract the interest from the payment; this is repayment of principal

Step 4: Subtract the repayment of principal from the beginning amount owed