a) You lend a friend RM15,000 for which your friend will repay you RM28,250 at the end of five years. What interest rate are you charging your friend? (3 marks) b) Assume today you open an account with RM5,000 into a bank that pays interest semi-annually. How much will you have in your account at the end of the fifth year if the interest rate is 12 percent per annum? (2 marks) c) You bought a boat for RM50,000 paying a down payment of RM10,000. You agreed to pay the balance in 10 equal annual payments. Assuming an interest rate of 10 percent per year, compute the annual payment if the first payment is made today. (3 marks) Part III Capital Investment Analysis 187