th C +1) th a 2. (a) A loan has to be repaid at a yearly compound interest rate of r through N instalments of amount a each, such that payments are made at the end of each year. i. What part of a goes in repaying the interest in the mth year? (2 marks) N ii. If the sum total of the amounts paid as interests in the year and that 2 3N in the +1 year is equal to set up a quadratic equation involving the 4 2 interest rate r. (6 marks) iii. Solve the quadratic equation obtained in part (2a(iii)) above and evaluate N from this result using r=6%. (3 marks) (b) A car costs 50,000. The dealer charges an initial deposit of 5000 with the rest to be repaid in equal monthly instalments of amount a each over 48 months at 6% interest. (i) Calculate a using any focal date of your choice. (3 marks) (ii) Calculate the finance charge. (2 marks) (iii) Calculate the Annual Percentage Rate. (4 marks) (Total: 20 marks) th C +1) th a 2. (a) A loan has to be repaid at a yearly compound interest rate of r through N instalments of amount a each, such that payments are made at the end of each year. i. What part of a goes in repaying the interest in the mth year? (2 marks) N ii. If the sum total of the amounts paid as interests in the year and that 2 3N in the +1 year is equal to set up a quadratic equation involving the 4 2 interest rate r. (6 marks) iii. Solve the quadratic equation obtained in part (2a(iii)) above and evaluate N from this result using r=6%. (3 marks) (b) A car costs 50,000. The dealer charges an initial deposit of 5000 with the rest to be repaid in equal monthly instalments of amount a each over 48 months at 6% interest. (i) Calculate a using any focal date of your choice. (3 marks) (ii) Calculate the finance charge. (2 marks) (iii) Calculate the Annual Percentage Rate. (4 marks) (Total: 20 marks)