You are planning to borrow $70,000.00 to be repaid annually for 4 years and the annual interest rate is 7% on a yearly rest. (You will need to work out the loan amortization schedule for this loan in order to answer the following questions)

i) What is the annual repayment?

(4 marks)

ii) How much would the outstanding loan be at the end of year 2 and 3?

iii) Calculate the total interest to be paid.