Problem 1 (20 points, 15 minutes) To buy a new plant, you will borrow $55,000 from your bank at an annual interest rate of 8%. Your loan will be for five years. Assume the loan agreement calls for fixed principal payments every year. Prepare an amortization table for the first 2 years only? Show detailed calculations for the first-year entries (10 points) Total Principal Ending Balance Payment Payment Payment Balance Year Beginning Interest 2 Explanation If instead you are considering another financing option: a loan for two years that calls for equal monthly payments an APR of 12% to finance the purchase of the $55,000 worth of new plant. What would be your principal payment for the first month? (10 points) of 5 11- Exam II-Fall 2021 Problem 1 (20 points, 15 minutes) To buy a new plant, you will borrow $55,000 from your bank at an annual interest rate of 8%. Your loan will be for five years. Assume the loan agreement calls for fixed principal payments every year. Prepare an amortization table for the first 2 years only? Show detailed calculations for the first-year entries (10 points) Total Principal Ending Balance Payment Payment Payment Balance Year Beginning Interest 2 Explanation If instead you are considering another financing option: a loan for two years that calls for equal monthly payments an APR of 12% to finance the purchase of the $55,000 worth of new plant. What would be your principal payment for the first month? (10 points) of 5 11- Exam II-Fall 2021