For dollar amounts, give your answer to the nearest cent. For interest rates, give our answer as a percentage rounded to 4 decimal places. The various parts in the question will typically require values from earlier parts. In these cases, use the EXACT values from the earlier parts, not the rounded values.

Please show all neccecary working as excel formulas are NOT accepted and I need to record all working in writing

Jerry is considering taking out a loan of $100,000 to make an investment. The details for the loan are as follows:

Repayments will be made on a half-yearly basis. However, the first repayment will be made exactly THREE months from today.

The loan will be repaid by 10 level repayments

The interest charged on the loan is 6% p.a. compounding monthly Using this information, answer the following questions.

a) Let rq denote the equivalent effective quarterly (i.e. a 3-month period) rate charged on Jerrys loan. Write down an equation that can be solved to obtain the effective quarterly rate (your equation should involve rq). You do NOT need to solve this equation. (1 mark)

b) Explain whether or not we should use the interest rate rq in an annuity formula when working with Jerrys loan. (1 mark)

c) State clearly the type of effective rate that should be used in an annuity formula for Jerrys loan as described above (e.g. effective monthly rate, effective weekly rate). Then determine the value of this effective rate. Express your answer as a percentage to 4 decimal places. (1 mark)

d) Draw a cash flow diagram, and then determine the size of the level repayment for Jerrys loan.