You borrowed $45,000 at 4% annual interest rate that you must repay over 3 years. The loan is amortized into three-equal end-of-year payments.

(a) Calculate annual payment amount

(b) Prepare a loan amortization schedule

(c) If you make equal monthly payment for 36 months, calculate monthly payment amount and prepare a monthly loan amortization schedule

(d) How much is total interest charge for 3 years, if you make annual payment? How much is total interest charge for 36 months, if you make monthly payment? Do you pay more interest with annual payment or monthly payment? Why?