a. What would be the annual payments on an 8 percent per annum installment loan of $1,000 with repayment over three years?

b. Write out the amortization schedule for the loan.

c. Now suppose that the payments were to be made on a semiannual basis: what would the semiannual payments be? Assume the 0.08 is a nominal rate.

d. Is the total paid in case (c) less or more than in the former case? Why?