You borrow $50,000 from your parents. The terms of the loan are that you will make equal payments back to your parents at the end of each of the next 4 years. If the interest rate on the loan is 3% calculate

1) the amount of each payment

2) the amount that you will pay in interest for the four years (total amount of interest). Verify your results by constructing an amortization table.

3) Calculate the payment if instead of annual payments, you make monthly payments.