hi experts

please help and explain

whta formular to use and why

Jackson decided to find out from another bank

(SSC Bank) under what conditions they were willing to lend the money to him. If he borrowed $40,000, they would charge an interest rate of 4% p.a. compounded semi-annually. The loan and interest will have to be repaid to the bank over the 5 years with equal payments needing to be made at the beginning of each period. If Jackson borrows the money from this bank, what will be the semi-annual payments that he will make?

What is the total cash repayment for the loan over the period? How much interest would he have paid on the loan?

(c) Based on your answers to the above questions for options 1 and 2, make a recommendation to Lotus and Peter as to which option they should choose and explain why?

Here is a Interest factortable

Table 1 - Future Value Interest Factor for one dollar compounded at r percent for n periods: FVIFr, n = (1+r )n

Table 2 - Present Value Interest Factor for one dollar discounted at r percent for n periods:

PVIFr,n = 1/(1+r )n

Table 3 - Future Value Interest Factor for a one dollar annuity compounded at r percent for n

periods: FVIFAr,n = [(1+r )n - 1]/r

Table 4 - Present Value Interest Factor for a one dollar annuity discounted at r percent for n

periods: PVIFAr, n = [1-1/(1+r )n ]/r