Question: please give steps and equations thank you very much Problem 2 AA is in the process of taking a five-year loan of $50,000 with HSBC.

 please give steps and equations thank you very much Problem 2

please give steps and equations

thank you very much

Problem 2 AA is in the process of taking a five-year loan of $50,000 with HSBC. The bank offers three payment options: . Pay all of the interest (8% per year) and principal in one lump sum at the end of 5 years; Pay interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year;4 Pay 5 equal payments at the end of each year inclusive of interest and part of the principal. . Under which of the three options will AA pay the least interest and why? I Problem 3 Let's say that AAlin Problem 2 above decides to go with the amortized loan option and after having paid 2 payments decides to pay off the balance. Using an amortization schedule calculate his payoff amount

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