Consider a loan of $75000.00 repayable by equal quarterly instalments over 15 years calculated at an interest rate of 08.80% per annum convertible quarterly. From the lender's perspective, set a cash flow model in tabular form which covers all the scheduled repayments in the 15 years, allowing for tax at 30% on the interest component of the loan. (a) Calculate the amount of each quarterly payment. [4 marks] (b) calculate the after tax internal rate of return achieved by the [8 marks] lender on its investment over this loan to an accuracy of 0.01%, assuming that the borrower follows the loan schedule and there is no default.

ATTACH ANSWER IN EXCEL SPREADSHEET; REQUIRED BY TEACHER