Question: SECTION A Instructions: On the answer sheet provided, answer ALL questions in this section. Melon Black approached her credit union for a short-term loan to

SECTION A Instructions: On the answer sheet provided, answer ALL questions in this section. Melon Black approached her credit union for a short-term loan to finance the final year of college. She informs the loan officer that she will be able to make monthly payments of $20 000 and will repay the loan in ONE (1) year. Short-term loans of this nature attract a rate of 8 percent per year with monthly compounding. Required: A. Determine the maximum amount Melon can borrow from her credit union. (4 marks) B. Prepare the loan amortization schedule for the 12 MONTHS (1 year) (14 marks) C. Calculate the effective annual rate on the loan (2 marks)

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