Applies TVM techniques to real problems

Peter is considering making a loan of $500,000 to Paul. It is a three-year loan with annual payments due at the end of each year and a 7% annual interest rate. Find the payments that would be required to amortize the loan over the three-year period and then prepare an amortization schedule to demonstrate how the loan will be fully paid off in three years.

Year	Beginning Balance	Payment	Interest Paid	Principal Paid	Ending Balance
1	$500,000.00
2
3

(20 points)