(2) A loan of 20,000 is scheduled to be repaid with 13 annual payments that start at the end of the first year and reduce by 2% each year thereafter. (That is, the scheduled payments are P, 0.98P, 0.982P, etc.) The annual effective interest rate is 4%. The borrower makes the first 4 payments before he runs into financial trouble. The lender agrees to let the borrower skip the 5th and 6th payments, but interest on the loan will continue to accrue. Immediately after the 6th payment would have been made, the loan is renegotiated. The terms of the renegotiation are as follows: (i) the last 7 payments will be of equal amount, and (ii) the loan will yield annual effective 5% for the last 7 years. (a) Calculate P. (2229.88) (b) Calculate the outstanding loan immediately after the borrower makes the 4th payment. (14199.26) (c) Calculate the outstanding loan at the time the loan is renegotiated. (15357.92) (d) Calculate the new level annual payment for the remaining 7 years.(2654.15)