a) Explain constant Amortization mortgage loan. (2 marks)

b) Ali obtained a Kshs. 500,000 loan payable over 8 year period amortized at 12% interest with annual payments. Prepare a loan amortization schedule showing the loan balances at the end of the year under constant payment Amortization. (8 marks)

c) Explain the different categories of tenancy in real property. (4 marks)

d) A mortgage creates a right of security interest in the real property for the lender. What are the requirements from the lenders for valid mortgage contracts? (6 marks)