Task 4 - Loans (Maximum 10 Marks) Learning Outcome A bank is considering giving a loan of 50 000 to a customer at a variable interest rate. The rate used to find the initial payment is (N + 1)% where N is the last digit of your ID number. KU1) demonstrate mathematical literacy by consistently using correct Mathematical notation, terminology, conventions, and relevant diagrams and graphs; The loan is repaid in annual instalments over a fixed number of years. a) Using Excel, or otherwise, produce a table showing the annual repayment amount for a range of repayment terms from 5 years up to 10 years inclusive. You must show your working for at least one of the repayment terms. The bank issued the loan for an original term of 5 years and the customer has just paid the 2nd payment. KU2) evaluate the strengths and weaknesses of alternative models and consequently of any conclusions drawn; With immediate effect from the 2nd payment the bank has decided to change the interest rate charged to (N + 3)% where N is the last digit of your ID number. b) Calculate the new annual payment and the increase in the total amount of interest paid. SS4) solve a range of business-related problems either deterministically or probabilistically as appropriate; SS5) choose and apply appropriate techniques in algebra, and calculus in finding a solution to a problem; KE6) use a range of IT packages, including calculators, spreadsheets, word processors and skills in the analysis and solution of business problems; KE7) communicate their work effectively, presenting their solutions using an appropriate medium