6.The contractual rate on a 5-year, $40,000 tractor loan is currently 8%.Interest is calculated using the remaining balance method.

A)Calculate the effective rate, annual percentage rate, and the actuarial rate assuming fixed quarterly payments per year.If the rates vary, explain the reasons for the differences in rates.

B)Report the amortization scheduling using the conditions from section B.Include the principal and interest payments, as well as remaining principal balance for each year of the loan.