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Part 1

Complete parts a, b, and c for the loan described below. (a) Find the payment necessary to amortize the loan. (b) Find the total payments and the total amount of interest paid based on the calculated

annual

payments. (c) Create an amortization table and find the total payments and total amount of interest paid based upon the amortization table.A

4%

loan of

$40,000

compounded

annually,

with

5

annual

payments.

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Part 1

(a) The

annual

payment needed to amortize this loan is

$enter your response here.

(Round to the nearest cent as needed.)