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

(1) Calculate the annual payment amount.

(2) Prepare a loan amortization schedule.

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

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