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Becky is the owner of Brookstone Farm. On January 1, 2007, thebeginning of the company's fiscal year, Becky borrowed$750,000 at 5% annual interest to purchase equipment. The loan isto be repaid over six years in equal annual installments. (Roundeach to the nearest dollar).
A. What is the amount of Becky's loan payment each year?
B. Prepare anamortization table of the loan.
C. What will bethe amount of interest expense reported by Brookstone Farm for theloan in 2007 and in 2008?
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