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LOAN AMORTIZATION. Today is T=0. You borrow $250,000 today at a rate of interest of 8%. You agree to repay the loan over five years.

LOAN AMORTIZATION. Today is T=0. You borrow $250,000 today at a rate of interest of 8%. You agree to repay the loan over five years. Assuming a 40% tax rate, what are the tax implications, annually, if you repay the loan as a

Zero amortization schedule

Full amortization schedule

Partial amortization schedule ($100,000 extra balloon payment at T=5

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