Loan Consolidated Incorporated (LCI) is offering a special one-time package to reduce Custom Autos' outstanding bills to one easy-to-handle payment plan. LCI will pay off the current outstanding bills of $240,000 for custom Autos if Custom Autos will make an annual payment to LCI at an interest rtae of 10 % over the next 5 years.

a.What are the annual payments of the loan?

b.What is the amortization schedule for this loan if Custom Autos wants to pay off the loan before the loan maturity in

5 years?

c.When will the balance be half paid off?

d.What is the total interest expense on the loan over the 5 years?