Q$5$ You plan to borrow $$35,000$ at a $7\mathrm{.}5\%$ annual interest rate. The terms

require you to amortize the loan with $7$ equal end$-$of$-$year payments.

a$.$ How much interest would you be paying in Year $2?$

b$.$ Explain whether you agree or disagree with the following statement: "The payment

made each period on an amortized loan is constant, and it consists of some interest and

some principal. The closer we are to the end of the loan's life, the smaller the percentage

of the payment that will be a repayment of principal.