Hack Wellington Co. (HWC) plans to take out a five-year term loan from a commercial bank for $2,500,000 at a stated interest rate of 6%. The contract of the term loan requires that the borrower makes payments toward the principal of $250,000 every year for four years, along with the interest on the balance remaining each year. The contract requires HWC to pay off the balance at the end of the fourth year. 

Calculate the total payments that HWC will make each year and complete the amortization table with equal annual reductions in principal.

Answer rating: 100% (QA)

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