The contractual rate on a 5-year, $40,000 machinery loan is currently 8%. Interest is calculated using the remaining balance method

a. Calculate the effective rate, annual percentage rate and the actuarial rate assuming fixed quarterly payments per year.

b. Calculate the effective rate, annual percentage rate and the actuarial rate if annual payments are made.

c. Report the amortization schedule using the conditions from problem B. Include the principal and interest payments, as well as the remaining principal balance for each year of the loan.