Plz answer Question 5 5 (a) Consider the loan in Question 4, but suppose instead that the monthly payments are only interest repayments on the (full amount of) the loan but that there is one final repayment in 15 years time of $100,000. Find the present value of both the principal repayment and the interest payments and verify they sum to $100,000.

(b) Find the price now of an annuity which pays $3,000 at the end of every year for ten years, but which is deferred for two years, if the interest rate is 4.4% compounded every quarter.

4 Consider a loan of $100,000 which is to be repaid in 15 years with equal monthly repayments, beginning one month after the loan is taken out. The interest rate for the duration of the loan is 6% p.a. compounded monthly.

(a) Calculate the monthly repayment amount.

(b) Use Excel to draw up the loan repayment schedule. Do not print this out.

(c) Use the schedule to nd the interest component of the 60th payment and the balance after the 120th payment.

(d) Find the total payments made and the total interest payments.