business finance suplementary assessment

body text list. Emphasis Heading 1 Normal Strong STUDENT Question 2 (7 Marks) Linda decided to borrow $350,000 from a bank to buy her dream house. She approached Prosperity Bank and they offered Linda the following mortage package: interest rate of 2.45 % per year, weekly repayment, for 30 years. Required: a) Calculating the amount of weekly repayment Linda needs to make for the mortgage. (3 marks) ANSWER: I b) Linda wishes to have solar panels installed on the house roof. The solar panel provider offers her a payment package of $120/month at the end of each month for 2.5 years. Given the interest rate is 3.0%, calculate the present value of the payment package. (2 marks) ANSWER: c) Linda is considering two investment offers for saving up money to pay off her mortage in 10 years. Investment A offers the rate of return of 9.95% per year, compounding daily. Investment B offers the rate of return of 10% per year, compounding quarterly. Help Linda choose the better investment by calculating Effective Annual Interest Rate (EAR). (2 marks) Focus