Suppose a business takes out a GHC5000, 5-year loan at 9%. If the loan agreement calls for the borrower to pay the interest on the loan balance each year and to reduce the loan balance each year by GHC 1000, what would the loan repayment schedule look like? 

Prepare an amortization schedule for a three-year loan of $108,000. The interest rate is 9 percent per year, and the loan agreement calls for a principal reduction of $36,000 every year. How much total interest is paid over the life of the loan?

Home loans typically involve “points,” which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. For example, if the loan is for $120,000 and 2 points are charged, the loan repayment schedule is calculated on a $120,000 loan but the net amount the borrower receives is only $117,600. Assume the interest rate is 1.00% per month. What is the effective annual interest rate charged on such a loan, assuming loan repayment occurs over 216 months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.) Effective annual interest rate

Prepare an amortization schedule for a 3-year loan of $41,000. The interest rate is 11 percent per year, and the loan calls for equal annual payments.

Total Interest paid: