(c) A bank offers two repayment alternatives for a loan that is to be repaid over 20 years: (1) The borrower pays 8,000 per annum quarterly in arrears. (ii) The borrower pays 7,000 at the end of the first year, and each subsequent payment increases by 2.5%. Determine which option would provide the better deal for the borrower at an effective rate of interest 5% per annum (7 marks)