Attempts Keep the Highest / 2 12. Loan amortization and capital recovery Present value of annuity calculations are widely used for loan amortization and capital recovery problems. Both loan amortization and capital recovery problems require the calculations of annuity payments based on a given required rate of return. Suppose you invest in your friend's business. The process in which you determine the annuity amount needed to regain the invested capital is called Ian loaned his friend $30,000 to start a new business. He considers this loan to be an investment, and therefore requires his friend to pay him an interest rate of 8% on the loan. He also expects his friend to pay back the loan over the next four years by making annual payments at the end of each year. Ian texted and asked that you help him calculate the annual payments that he should expect to receive so that he can recover his initial investment and earn the agreed-upon 8% on his investment. Calculate the annual payment ind complete the following capital recovery schedule: Note: Round your answers to two decimals places. Interest Paid Principal Paid Ending Balance Payment Year Beginning Amount $30,000.00 1 2 3 $0.02 4 Grade It Now Save & Continue Continue without saving