a. Peter borrowed $160,000 from a bank at a fixed interest rate of 4.5% (p.a.) to set up his own business. He will repay the loan by regular monthly instalments over a period of 15 years. If the period of repayment is extended to 20 years and 25 years, calculate the monthly payment amount with different repayment schedule. (12 marks)

b. Discuss whether it is a good idea to extend the repayment period to 30 years. (8 marks)