On December 31, 2014, Sackport Ventures Inc. borrowed $90,000 by signing a four-year, 5% installment note. The

Question:

On December 31, 2014, Sackport Ventures Inc. borrowed $90,000 by signing a four-year, 5% installment note. The note requires annual payments of accrued interest and equal amounts of principal on December 31 of each year from 2015 through 2018.
a. How much principal will be included in each of the four payments?
b. Prepare an amortization table for this installment note like the one presented in Exhibit 15.18.