Rework Problem 55 assuming that the loan agreement calls for a principal reduction of $8,400 every year instead of equal annual payments.

In Problem 55

Prepare an amortization schedule for a five-year loan of $42,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan?