5. A bank makes a loan of 25,000 to an individual. The loan is to be repaid by level monthly repayments in arrears over a period of 10 years. The effective rate of interest paid by the borrower on the loan is 7.5% per annum. (a) Calculate the monthly repayment. [4 marks] (b) i) Calculate the loan outstanding after 7 years, immediately after the repayment then due is made. [3 marks] ii) Determine how much capital is repaid in the 85th monthly repayment. [3 marks] [Total: 10 marks]