QUESTION $3($a$)$

$|7$ marks

A company has a choice between a bullet loan and an equivalent amortized loan with a value of $$3,500,000.$ Calculate the repayment cash flows for a four$-$year loan with $3\mathrm{.}15\%$ pa fixed interest rate bullet loan and the equivalent amortized loan.

$\backslash$table$[[$Year$,$Bullet loan repayments,Amortized loan repayments$],[3\mathrm{.}15\%,2\mathrm{.}35\%,3\mathrm{.}15\%,2\mathrm{.}35\%$