loan pavments are typically designed to cover the interest accrued on the amount owed and to repay part of the initial loan, thereby reducing the principal owed. One way of representing this process is with a loan amortization chart, similar to this chart for a loan of $100,000 with an interest rate of 10% per time interval. The first row shows the initial loan and the remaining rows correspond to the loan payments. For each interval, the amount of new interest owed is calculated based on the interest rate and the loan balance at the end of the previous interval. The new balance is then calculated as follows: NewBalance- PreviousBalance + Interest - Payment. Time Interest 0.00 10,000.00 8,500.00 PaymentNew Balance 0.00 S100,000.00 85,000.00 68,500.00 25,000.00 25,000.00 2 Consider the two loan scenarios described below. To receive full credit, you must show formulas and calculations, as appropriate, and generate a loan amortization chart similar to that shown above. (The amortization charts may be created using Excel, MATLAB, or some other programming language (1) Loan amount $35,000.00: Interest rate-6.25% per year, 48 equal monthly payments Show the appropriate time-value-of-money formulas and calculate the amount of the monthly payment, then use that payment amount to create your amortization chart (2) Loan amount-$250,000.00: Interest rate-8.5% per year Show the appropriate time-value-of-money formulas and calculate the amount of equal monthly payments AS IF the loan were to be repaid over 30 years at 6.0% interest. Then use that payment amount and the actual interest (based on the 8.5% rate) to create an amortization chart showing the first 48 months of payments. How much is owed on the loan after 48 months of payments? Briefly explain what is happenin Why is this type of loan considered more risky than usual and when might it be an appropriate choice