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b) Prepare an amortisation schedule for a four-month loan $8,500. The interest rate is 9.5% per year with monthly compounding and the loan calls for
b) Prepare an amortisation schedule for a four-month loan $8,500. The interest rate is 9.5% per year with monthly compounding and the loan calls for equal monthly payments. i. Calculate the monthly loan repayment. [Clearly show all formula(s), steps, relevant figures and final answer. Round only the final answer to two decimal places, where applicable.] (1 mark) Click here to enter text. ii. Fill in all relevant values under each column in the table below. Show the formula(s) used to calculate each column. (2 marks) Display formulas here: Interest expense: Principal repayment: Click here to enter text. Outstanding loan balance: Click here to enter text. iii. State the interest amounts paid in the first and final periods. Which of these two periods has a lower interest amount? Clearly explain why this is the case. Use relevant figures for illustration. Also comment on the outstanding loan balance at the end of final period. ( 2 marks) Click here to enter text
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