Sam takes out a loan for $3,685.50. The term of the loan is 7 years, and she will make bi-weekly payments. The interest rate on the loan is 3.475% compounded monthly.

a) What is the effective interest rate per payment period?

b) If Sam is going to repay the loan with level payments, what is the monthly payment amount?

c) Fill in the first 3 rows of the loan amortization table.

d) What would the nominal interest rate (compounded monthly) have to be if the bi-weekly (level) payment amounts were $24.69?

e) If instead of level payments, Sam repays the loan (with the original interest rate) with level repayment of principal (plus interest), fill in the first 3 rows of the amortization table.