[3] Question 2 11 CT1 April 2005 A loan is repayable over 20 years by level instalments of 1,000 per annum made annually in arrear. Interest is charged at the rate of 5% per annum effective for the first 10 years, increasing to 7% per annum effective for the remaining term. Show that the amount of the original loan is 12,033.56. (Minor discrepancies due to rounding will not be penalised) [2]