QUESTION $1(25$ MARKS$)$

a$)$ Andrew is a loan officer of Bank AA$.$ A bank$$s customer has requested Andrew to present to him how his RM$200,000$ personal loan is going to be repaid by $36$ monthly installments based on an interest rate of $8\%$ p$.$a$.$

$($i$)$ Calculate the monthly repayment amount and complete the following loan amortization schedule.

Year

Beginning

Value

Repayment

amount

Interest

paid

Principal

paid

Ending

Value

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

$10$

$11$

$12$

$13$

$14$

$15$

$16$

$17$

$18$

$19$

$20$

$21$

$22$

$23$

$24$

$25$

$26$

$27$

$28$

$29$

$30$

$31$

$32$

$33$

$34$

$35$

$36$

$(16$ marks$)$

$($ii$)$ By the $24$th installment, the customer intends to make a lump sum payment of RM$20,000$ in addition to the monthly repayment amount. Prepare another loan amortization table starting from $25$th installment.

$(6$ marks$)$

$($iii$)$ Compute the interest saved when repays an additional of RM$20,000$ at the end of year $2.$

$(3$ marks$)$