Problem:
The company you work for is planning to borrow $58000 at an effective interest rate of 15% per year. The company expects to repay the loan with six equal annual payments at the end of each year, beginning one year after the loan is received.
Required:
Question 1: Compute the annual amount of the installment loan payment.
Question 2: Determine the amount of interest that would be charged in the first year.
Question 3: Determine the amount of interest that woul dbe charged in the second year.
Note: Be sure to show how you arrived at your answer.