Question 7 (18 Marks) Dave has obtained an amortization loan for $120,000 from Prosperity Bank. He is going to repay the loan by making equal annual year-end payments for 5 years. The first repayment will be made in 1 year. The interest rate on the amortization loan is 8% per year. You are required to draw the amortization schedule/table (as shown below) in your answer sheet and fill in the columns for: beginning balance, annual payment, interest paid, principal paid and ending balance for each year. Year Beginning Annual Interest Principal Ending balance payment paid paid balance 1 2 3 4 5 Totals Show your workings of how you can get the figures of annual payment, interest paid, principal paid and the ending balance. 15 marks b. How much is still owed to Prosperity Bank after Dave has made the second loan repayment? Use the PV Annuity formula to work out your answers. 3 marks