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(b) You can borrow 90,000 for 15 years at an interest rate of 3 percent. The terms are that the 90,000 plus interest must be

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(b) You can borrow 90,000 for 15 years at an interest rate of 3 percent. The terms are that the 90,000 plus interest must be repaid in fifteen equal annual instalments. REQUIRED: (1) How much interest will you pay in the second year? [5 marks) (ii) How much will you pay in interest over the life of the loan? [3 marks)

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