I understand part 1 of this question. need help with part 2. PLEASE & THANK YOU!

M. 1.Construct an amortization schedule for a $1,000, 4% annual interest loan with three equal installments.

Loan Amount = $1,000 Annual Interest rate = 4% Time Period = 3 years

$1,000 = x/1.04 + x/1.04^2 + x/1.04^3 $1,000 = x*2.775091 x = $360.35

2. What is the annual interest expense for the borrower and the annual interest income for the lender during Year 2?

Interest PrincipleClosing Opening Balance Cash Paid Paid Payment Balance 1000.00360.35 40.00 320.35 679.65 679.65 360.35 27.19 333.16 346.49 348.49 360.3513.86346.49 0.00