Assume a Five-Year Equal Payment Amortization Schedule with an Annual

Multiple Choice

Assume a five-year equal payment amortization schedule with an annual interest rate of 7% and annual payments.If the beginning principal is $8,000,then the first interest payment will be how large?

A) $560.00
B) $960.00
C) $1,219.28
D) There is not enough information to answer this question.