Problem 6: Amortization Problem: Suppose a business takes out a $5,000, three year loan at 10 percent annual interest rate. Create the amortization table. Find out the annual payment, and break down how much is paid to interest payment, and how much is paid to principal payment. [Refer to your book problem page: 147] (MCQ No. 45, 46, 47, 48, 49, and 50 are related with this problem). (Show all work)

45. Annual Payment should be a. 2107.50 b. 2100.57 c. 2010.57 d. 2010.75 46. Beginning balance for year 1 a. $5000 b. $ 0 c. $ 500 d. none of the above 47. Interest paid for year 1 a. $5000 b. $ 0 c. $ 500 d. none of the above 48. Ending balance for year 2 a. $3489.43 b. $ 0 c. $ 1827.80 d. none of the above 49. Principal paid in year 2 a. $3489.43 b. $ 1661.63 c. $ 1827.80 d. none of the above 50. Ending balance for year 3 a. $5000 b. $ 0 c. $ 500 d. none of the above