a) Determine Ken's present value at time 0 of payments of $480 at the end of each quarter for 8 years. The annual effective rate of interest is 6%. Show manual calculations.

b) Edward takes out a loan today and repays the loan with 8 level annual payments, with the first payment 1 year from today. The principal portion of the fifth payment is 699.68. The payments are calculated based on an annual effective interest rate of 4.75%. Calculate the total amount of interest paid on Edward's loan. Show manual calculations.