3. Noel needs a loan of $5,000 to replace the engine in his car. Noel will borrow the money and repay the loan back monthly over 3 years. He has three options for a loan: i. Coast bank will lend him the $5,000 at 8% annual interest. ii. Laurentian will lend him the $5,000 at 6% annual interest but they will also charge a $250 loan origination fee that will be added to the initial loan balance. iii. First Canadian Bank will loan the $5,000 at 5% annual interest but charge loan insurance of $500 that will be added to the initial loan balance. Required:

a) What are the monthly payments for each loan?

b) How much interest will be paid on each loan?

c) Complete an amortization table (see page 202) for the first five months of the Coast bank loan.

d) Which loan would you recommend Noel take?