International Potash got a $50 million loan amortized over a 10-year period at 10% per year interest. The loan agreement stipulates that the loan will be repaid in 10 equal annual payments with interest charged on the principal amount of the loan (not on the unrecovered balance).

(a) What is the amount of each payment?

(b) What is the total amount of interest paid? How does the total interest paid compare with the principal of the loan?