Amortization with Equal Payments

. Prepare an amortization schedule for a three-year loan of

$75,000. 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?

LO 3 56.

Amortization with Equal Principal Payments

. Rework Problem 55 assuming that the loan

agreement calls for a principal reduction of $25,000 every year instead of equal annual payments.

I only need help with question 56.