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Huang's friend, Tanveer, wants to buy some IT equipment for his business. The equipment costs $75 000, and he takes a reducing-balance loan with the following terms: Monthly repayments of $1 556.88 for 5 years Interest of 9% per annum, compounding monthly a What is the effective rate of Interest on the Best Building Society account, correct to 3 decimal places? b. Why may it be useful for Tanveer to know the effective rate of interest, when he is comparing loans? C. Calculate the following: 1. the total amount of interest paid. 11. the amount which can be borrowed on a flat-rate loan in which all other variables are the same as above. Ill. . how much less Tanveer would have been able to borrow on a flat-rate agreement. Question 2 continues on the next page . . . Page 8 of 11 Question 2 continues . .. The bank offer Tanveer the option of taking the loan on interest-only basis before beginning repayments. What would the monthly repayment be during the interest-only period? State one advantage and one disadvantage of taking an in