ABC Limited took out a loan with Great Northern Bank on January 1, 2021 in order to puchase a new delivery vehicle. The amount borrowed was $40,000 and interest will be charged at 6% annually. The loan will be repaid in three equal payments with the final loan payment due December 31, 2023. At that time, the loan will be paid in full.

Required:

a. What is the amount of the annual loan payment? Round your answer to two decimal points. (2 marks)

b. Prepare an loan amortization schedule for the period from January 2, 2021 until December 31, 2023. (8 marks) Round your answers to two decimal points. Your amortization schedule should use the following format:

Year	Opening Balance	Payment	Interest Paid	Principal Paid	Closing Balance
1
2
3

c. What is the total amount of interest paid over the life of the loan (1 mark)?