Ditech Corporation Borrowed $50,000 on January 1, 2013

Ditech Corporation borrowed $50,000 on January 1, 2013. The loan is for a ten-year period and has an annual interest rate of 9%. At the end of each year, Ditech will make a payment of $7,791, which includes both principal and interest. With this loan, the amount of interest expense that Ditech reports on its income statement will be the same for each year of the loan.