a a 9. (a) A charity is promised of a lump sum 120,000 donation in 12 years. Calculate the present value of this donation, assuming an interest rate of 1.85% compounded continuously. [3 marks] (b) The charity decides to take a loan of 100,000 to fund its current activities. Determine the monthly payments required to repay this loan over 12 years at 1.85% interest compounded annually. [5 marks] (c) Will the cost of the loan be fully covered by the donation in 12 years? [2 marks] (d) Calculate the outstanding debt at the end of each of the first three years of the loan. [5 marks] (e) If the borrowing interest rate increases to 2.25% at the beginning of the fourth year, calcu- late the new monthly payment. [5 marks]