Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a result, they are now thinking about buying a commercial oven. They know which oven they want and that it will cost $17,000. The company already has $5,000 set aside for the purchase and will need to borrow the rest.

Natalie and Curtis met with a bank manager to discuss their options. She is willing to lend Cookie & Coffee Creations Inc. $12,000 on November 1, 2017, for a period of 3 years at a 5% interest rate. The terms provide for fixed principal payments of $2,000, on May 1 and November 1 of each year plus 6 months of interest.

Prepare a payment schedule for the life of the note. (If answer is o, please enter o. Do not eave any fields blank. Interest Period Cash Payment Interest Expense Reduction of Principal Principal Balance Nov. 2017 12000 May 2018 300 2300 10000 Nov. 2018 250 2250 8000 May 2019 200 6000 Nov. 2019 2000 150 2150 May 2020 100 2100 2000 Nov. 2020 2000 2050 Totals 1050 13050