1. Construct a loan amortization schedule for a 15-year, 7.25% loan of $7,000,000. The loan requires equal, end-of-year payments, and interest is compounded monthly.

- What is the total amount of interest paid over the life of the loan?

2. Re-construct this amortization schedule assuming that interest is compounded annually.

- What total amount of interest is paid over the life of the loan?

- What is the difference between those total interest amounts?

3. Assume that in sections 1 and 2 above, there is a requirement to repay the whole remaining loan balance at the end of the tenth year, immediately after making the last equal payment.

What is the loan balance to be paid in section 1?

What is the loan balance to be paid in Section 2?

What is the difference between these amounts?

B.- 1. Construct a loan amortization schedule for a $3,000,000, 3-year loan, made at 6.50% quoted annual rate. Interest is compounded daily, and the loan requires equal end-of-period monthly payments.(use 360-day year for computation)

- What is the total amount of interest paid on this loan?