Jay clarke has just closed a business loan of $$600$

$000$ to assist with the purchase of equipment for her small business. The

loan will be repaid in five $(5)$ equal annual end$-$of$-$year installments and the

institution has agreed to lend at a rate of $12\%$ compounded annually. As

part of her business$$ detailed financial planning, she wishes to

determine the annual interest payments attributable to the loan.

Required:

A$.$ Determine the

business yearly payment on a $$600000$ loan. $(4$ marks$)$

B$.$ Prepare an amortization schedule for this

loan. $(12$ marks$)$

C$.$ What is the loan

balance at the end of year $3?(1$ mark$)$

D$.$ How much interest

expense will be paid over the life of the loan? $(1$ mark$)$

E$.$ What is the effective rate of interest on the

loan if interest is compounded quarterly? $(2$ marks$)$