Consider a project whose initial investment is $500,000 financed at an interest rate of 9% per year.

Question:

Consider a project whose initial investment is $500,000 financed at an interest rate of 9% per year. Assuming that the required repayment period is six years, determine the repayment schedule by identifying the principal as well as the interest payments for each of the following methods:
(a) Equal repayment of the principal
(b) Equal repayment of the interest
(c) Equal annual installments