(b) Encik Ramli borrows RM20,000 and will repay the loan under a 25-year annuity immediate payments. The annual repayment is calculated at an effective interest rate of 8% with increment of RM50 each year.

(i) Calculate the amount of the first payment. (3 marks)

(ii) Calculate the outstanding balance after the first three payments have been made. (3 marks)

(iii) Explain your answer to part (ii) (3 marks)

(iv) Calculate the total amount of interest paid over the term of the loan. (3 marks)