Question: QUESTION 4 For 2(a)-2c) using the following information. You borrow $10,000 today with interest rate 7%, and you plan to pay the bank back with

QUESTION 4 For 2(a)-2c) using the following information. You borrow $10,000

QUESTION 4 For 2(a)-2c) using the following information. You borrow $10,000 today with interest rate 7%, and you plan to pay the bank back with 7 equal annual payment. Let us assume the first payment happen at the end of each year. Principal beg. year Payment end year Interest Principal Year 1 2 3 4 5 6 7 8 2(a) how much is the annual payment? QUESTION 5 You borrow $10,000 today with interest rate 7%, and you plan to pay the bank back with 7 equal annual payment 2(b) How much the interest payment for year 3? QUESTION 6 You borrow $10,000 today with interest rate 7%, and you plan to pay the bank back with 7 equal annual payment. 2(c) How much is the balance of principal at the end of year 7

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