You borrow $60,000. This loan will be paid back over fiver years, with payments made at the end of each year. The interest rate charged on the loan is 9%.

1. What is the balance of the loan at the end of year one?
   1. $50,252.71
   2. $49,974.45
   3. $37,774.08
   4. $32,193.91

1. How much interest was paid in year three?
   1. $3,514
   2. $4,115
   3. $4,985
   4. $5,221

How do i solve these questions to get the final answer, i want to know step by step.