3. You would like to pay off your $45K loan over 3 years, starting next year. The loan compounds at 6 percent per year. How much do you pay each year? Would the payments average to more than $1.25K per month or less? (Hint: apply the annuity formula) (time value, slide 36) You would like to pay off your $45K loan over 3 years, starting next year. The loan compounds at 6 percent per year. How much do you pay each year? Would the payments average to more than $1.25K per month or less? (Hint: apply the annuity formula) (time value, slide 36)