Question: Show The calculation please!!! 1) Mr. Bobby borrowed RM15,000 at 14 percent annual rate of interest to be repaid over three years. The loan is

Show The calculation please!!! 1) Mr. Bobby borrowed RM15,000 at 14 percent annual rate of interest to be repaid over three years. The loan is amortized by three equal annual end-of-year payments.

i. Calculate the annual end-of-year loan payment. (1 mark)

ii. Prepare a loan amortization schedule, showing the interest and principal breakdown of each of the three loan payments. (4 marks)

2) Mr. Doni inherited the family mini market business and has decided to sell it to a potential local buyer. For this purpose, he got two offers as stated below:

Offer 1: Mr. Doni will receive RM8,000 at the end of each year forever.

Offer 2: Mr. Doni will receive RM50,000 at the end of year 1, RM65,000 at the end of year 2, and RM12,000 at the end of each year from year 3 to year 10.

The current market rate of interest for Mr. Doni is 6% compounded annually.

Calculate the present value of Offer 1 and Offer 2. Which offer should Mr. Doni choose to sell his mini market business? (5 marks)

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