N M Chelsea Corporation just negotiated a $4,000,000, 5-year term loan with its bank to help finance the acquisition of a new machine. The bank quoted an annual interest rate of 10%. Payments, each including interest and repayment of principal, are to be made annually at the end of each loan year. 4 Required: For each case, calculate (1) the principal repaid with the first annual payment, and (2) the interest paid with the first annual 5 payment. 6 7 8 The loan is an equal payment loan. 10 11 12 13 14 15 16 The loan is an equal amortization loan. 17 18 19 20 21 22 23 24 The loan is an equal payment loan over the first four years with a balloon payment of $1,500,000 (to include both interest 25 and principal) at the end of the fifth year. 26 27 28 31