Jean and Bean have been married for four years now. They are expecting a baby soon and have plans to have another when the first child reaches 4 years of age. They currently operate a small online business selling fresh fruits and vegetables. Although they have operated as an informal business from their home for the last three years, their business is presently doing quite well. After some deliberation, they have agreed to make their business formal.

Jean and Bean have approached you as a management consultant to assist and advise them in a few areas: business operational and financial issues; an appropriate form of business organisation based on the current business condition; and some personal finance issues.

Jean and Bean are thinking of taking a loan to support the expansion of their business. Jean estimates that a loan amounting to $50,000 is required for the expansion. She has asked for some guidance on the loan amortization. Prepare an amortization schedule for a $50,000 loan to be repaid in equal instalments at the end of each of the next 3 years. Use an interest rate of 10% compounded annually. (12 marks)