Expanding Corporation financed a $500,000 expansion by mortgaging their head office building for seven years. They negotiated a rate of 5% per annum....

10.Expanding Corporation financed a $500,000 expansion by mortgaging their head office building for seven years. They negotiated a rate of 5% per annum. They will make equal annual payments at the end of the year.

Note: if needed, complete the amortization table for the mortgage using the effective interest method

What is the amount of the principal payment in Year 2

$25,000

None of the other alternatives are correct

$71,429

$64,480

$86,410