1) Long-term debt financing involves borrowing money from a financial institution for a period of time that is greater than one year. In return for borrowing the money, a company promises to pay back the principal along with interest. Loan payments are normally the same from period to period, however the portion of the payment that represents interest decreases with each payment. Explain why interest expenses decrease over the life of the long-term debt. How is interest expense normally calculated (formula)? Explain with an example. (5 points)