As a small software developer firm, you have approached the AXZ Bank to obtain a term loan so that the firm can purchase a new server. The AXZ bank provides two (2) offers to your company, as listed below: a) a loan of $100,000 over a five (5) year period at an interest rate of 7.65% per annum (per year) payable at the end of each month. b) a loan of $100, 000 over a three (3) year period at an interest rate of 5.5% per annum (per year) payable at the end of each month.

Requirements

1. Calculate the monthly loan instalments for each offer listed above a) and b)

. 2. Calculate the total interest payments for each offer listed above a) and b). (Note Students must clearly provide all workings and calculations in their response)