You borrowed $100,000 at 4% annual interest rate that you must repay over 5 years. The loan is amortized into five-equal end-of-year payments.

(1) Calculate annual payment amount

(2) Prepare a loan amortization schedule

(3) If you make equal monthly payment for 60 months, calculate monthly payment amount and prepare a monthly loan amortization schedule

(4) How much is total interest charge for 5 years, if you make an annual payment? How much is total interest charge for 60 months, if you make monthly payment? Do you pay more interest with annual payment or monthly payment? Why?