On December 31, 2014, KEC Environmental Corp. borrowed $100,000 by signing a four-year, 5% installment note. The note requires four equal payments of accrued interest and principal on December 31 of each year from 2015 through 2018.
a. Calculate the size of each of the four equal payments.
b. Prepare an amortization table for this installment note like the one presented in Exhibit 15.19.