*3.2.16 Smith has two options to repay a loan at effective annual interest rate i >0 over an n-year period: (i) n level annual payments start- ing one year after the loan, or (ii) 12n level monthly payments starting one month after the loan. (a) Show that on each annual anniversary of the loan, the out- standing balance just after payment is made is the same under both options. (b) Show that the total interest paid under scheme (i) is greater than under scheme (ii). *3.2.16 Smith has two options to repay a loan at effective annual interest rate i >0 over an n-year period: (i) n level annual payments start- ing one year after the loan, or (ii) 12n level monthly payments starting one month after the loan. (a) Show that on each annual anniversary of the loan, the out- standing balance just after payment is made is the same under both options. (b) Show that the total interest paid under scheme (i) is greater than under scheme (ii)