1 a) Lucy currently owes $10,000 to a friend who is charging her interest of 2.00% p.m. She is required to settle the loan with two equal payments, one today and the other in five months.

Calculate the size of the payments using five months as the focal date.

Round to the nearest cent

b) Lucy then invested $6,700 into a 11-month term deposit at a rate of 3.4% p.a. After 11 months, he invested the entire maturity value from the first term deposit into a new 6-month term deposit at a rate of 5.1% p.a.

What is the total amount of interest that Lucy earned?

Round to the nearest cent.

c) Afterwards, Lucy received a demand loan for $8,000 from her bank on January 30, 2011 at 5.70% p.a. simple interest. On May 24, 2011, the interest rate on the loan changed to 6.35% p.a. and Lucy settled the loan on July 16, 2011. Calculate the total interest paid on the loan.

Round to the nearest cent