a) Sam took a RM100,000 bank loan from SEA Bank. The bank charged Sam 7% p.a interest and requires him to pay at the end of each year for 10 years. Calculate the yearly repayment amount, and complete the following loan amortization schedule.

(ii) By the end of year 5, Sam not only services the yearly repayment amount but also pays an additional RM10,000 to partially pay off the loan. Prepare another loan amortization table starting from year 6. (6 marks)

(iii) Compute the interest saved when repays an additional of RM10,000 at the end of year 5. (3 marks)

b) Ranjit invested RM10,000 in Bank SEA Bank three years ago. The bank pays 10% simple interest per annum. He decided to withdraw all the money accumulated in SEA Bank and invest in AFIN BANK that gives 6% interest p.a. compounded quarterly. He plans to keep the money for 4 years in Afin Bank. Calculate theaccumulated amount at the end of the fourth year. (6 marks)

(10 marks)