Question 1: (15 points)

The President of ARIS Bank is offering you the financial analyst position because she admires your knowledge and your character. Prove to her that you know how to fix an amortization schedule given that the loan amount is L= $50,000 dollars, the interest rate is 6% and the time-period is 5 years.

a. Show all your calculations analytically.

b. Is this loan an Annuity? What kind of an Annuity?

c. Which types of Annuity (Ordinary or Annuity Due) command higher value?

NOTE - DONOT USE EXCEL