Shelly is getting a brand new car. Shellys car loan breaks down as follows: principal is $7,000, interest rate is 5%, you negotiated 7-year loan term. Assume that shelly make payments at the end of each year.

1) Calculate the annual payment you have to make on the loan. Show equation you will use to calculate this annual payment.

2) Out of this annual payment, what is the interest payment and principal payment in years 1, 2, 3, 4, 5, 6, and 7?