Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 3

Spectra Scientific of Santa Clara, CA, manufac­tures Q-switched solid state industrial lasers for LED substrate scribing and silicon wafer dicing. The company got a $60 million loan, amortized over a 5-year period at 8% per year interest. What is the amount of the unrecovered balance ( a ) mediately before the payment is made at the end of year 1, and ( b ) mediately after the first payment