Question: NEED ALL ANSWER QUESTION 3 (12 marks) (a) Under what situation does the effective annual interest rate (EAR) differ from the annual percentage rate (APR)

NEED ALL ANSWER QUESTION 3 (12 marks) (a) Under what situation

NEED ALL ANSWER

QUESTION 3 (12 marks) (a) Under what situation does the effective annual interest rate (EAR) differ from the annual percentage rate (APR) [2 marks] [your answer here] ? (b) A company obtained a loan of RM1,000,000 at an interest rate of 15% compounded monthly to purchase four machines for harvesting crops. The loan is expected to be settled in 10 years. i. What is the effective annual interest rate of the loan? [2 marks] [your answer here] ii. the loan Calculate payment. [your answer here] monthly [2 marks] iii. What is the loan balance after ninety one (91) payments? [2 marks] [your answer here] iiii. Calculate the total amount of principal and interest paid after ninety one (91) payments are made. [4 marks] [your answer here]

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