A4. (a) A bank has just granted a loan of 15,000 to a business to be repaid in ten equal instalments, annually in arrears. The rate of interest is 5% per annum effective. (i) Calculate the amount of the annual repayment. [3 marks] (ii) Calculate the duration (discounted mean term) of the repayments. [3 marks) (b) Use the algebraic approach to find the present value of a perpetuity which pays 200 at the end of each month for the first 5 years, 1,500 at the end of each quarter for the next 5 years, and from the 11th year pays 1,000 at the end of every six-month forever. The annual effective interest rate is 7%. [4 marks)