Suppose you borrowed $$15,000$ at a rate of $8\mathrm{.}0\%$ and must repay it in $5$ equal instalments at the end of each of the next $5$ years. By how much would you reduce the amount you owe in the second vear?Wow & Wow Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed $($AFN$).$ Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?

$\backslash$table$[[$Last year's sales $=$S$\_(0),$$$200,000,$Last year's accounts payable,$$50,000],[$Sales growth rate $=$g$,40\%,$Last year's notes payable,$$15,000],[$Last year's total assets $=$A$\_(0)**,$$$135,000,$Last year's accruals,$$20,000],[$Last year's profit margin $=$PM$,20\mathrm{.}0\%,$Target payout ratio,$25\mathrm{.}0\%]]$

$(10$ Marks$)$