1. You have decided to purchase a house worth Rs 2,500,000 by paying Rs 500,000 in cash up front and borrowing the remainder for a tenure of 15 years. The financing bank's agents provide you the following details about this loan arrangement interest rate = 8%; term to maturity - 15 years. (Total 25 Marks) a. What is the present value of the loan amount that you will be borrowing? (3M) b. If you are required to pay a yearly interest on this borrowing and repay the entire borrowed amount as lump surn at the end of 15 years, what is the interest amount that you will be charged per annum? How much total interest you will pay over the life of your debt? 17M) c. Now, suppose the bank agents tell you that you need to repay this debt as an EMI equated monthly Installments) over the life of this contract. How much will your EMI e monthly installments) be? (8 M) d. Which option (option bor c) is better for you, and why? 3M) e. What is the difference between compound interest rate and simple interest rate? Generally, in finance, which of the above two are used more frequently? (4 M)