Problem 5. Your company buys a truck for $17,000. To make this purchase, your company takes a loan at 11% APR for 60 months.

A.

What schedule of monthly principal, interest and total payments must your company make, month-by-month and cumulative, to service the loan over its life? Provide the amortization schedule (using excel functions or equations from Peterson).

B.

If your company had taken the loan for only 48 months instead of the 60 months, what would be the differences in the monthly total payment and the cumulative interest payments compared with the 60 month loan that you actually got? Provide the amortization schedule (using excel functions or equations from Peterson).