Your company borrows $500,000 from a bank to finance the purchase of a new machine. The

nominal annual Interest rate Is 8%. The loan is to be fully amortized over 2 years, with equal

payments made at the end of each 6-month perlod.

1. What will be the total amount of loan principal repald during the entire first year?

2. What will be the total amount of Interest pald during the entire second year?

(Note: For each question, please show detalled explanations as to how you proceed to your answer

along with detailed calculations).