A sum of money is borrowed, for a ten year term, as a depreciating balance annuinty, at a fixed interest rate of 15% per annum. Repayments are to be made on a monthly basis.

The borrower decides, from payment one, to increase the monthyly repayment by ten percent, rounded off upwards to the nearest Rand.

Determine,

(a) the difference in the final total repayment made by the borrower, as a result of increasing the monthly repayments,

(b) how many repayments have to be made for the total sum repaid, up to that point, to equal, or just exceed, the outstanding balance of the depreciating annuity,

(c) determine the number of monthly repayments that have to be made for the capital redemption portion of the monthly repayment to equal, or just exceed,

(i) half the interest portion of the monthly repayment,

(ii) the interest portion of the monthly repayment,

(iii) twice the interest portion of the monthly repayments,

(d) Provide , under a cover page, with content page, introduction, method/technique , problem statement , graphs and conclusion a neat, fully annotated, large format graph,on which are shown

(i) balances at any time for

miniuim monthly repayments and

increased monthly repayments

(ii) total amount repaid at any time for

miniuim monthly repayments and

increased monthly repayments

(iii) difference in repayment period

(e) determine the repayment period that will make the total sum repaid equal to two and a half times the sum borrowed.