Becky is the owner of Brookstone Farm. On January 1, 2007, the beginning f the company’s fiscal year, Beck borrowed $ 750,000 at 5% annual interest rate to purchase equipment. The loan is to be repaid over six years in equal annual installments.
a. What is the amount of Becky’s loan each payment each year?
b. Prepare an amortization table
c. What will be the amount of interest expense reported by Brookstone Farm for the loan in 2007 and in 2008?