A firm is advanced a Shs 5 million= loan by a bank to be repaid in equal monthly installments over five years at a rate of interest of 18% per annum. After the 24^th installment, the rate of interest is adjusted to 20% per annum and the monthly installment size recomputed such that the loan is fully repaid in the remaining duration of the initially agreed term. After the 36^th installment, the rate of interest is loweredby 3% per annum but the monthly installment size is not adjusted, until from the end of the 49^th month when it is increased by Shs 29,330.

Required:

(i)Compute the initially agreed installment and the one after the interest rate adjustment to

20% per annum.

(ii)At the end of which month would the loan be fully repaid?

(iii)What is the total interest that the firm pays on the loan during its term?