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Instruction: Complete ALL questions from this section. Question Suzette Jones has negotiated a loan with a financial entity to help pay for a Master's degree
Instruction: Complete ALL questions from this section. Question Suzette Jones has negotiated a loan with a financial entity to help pay for a Master's degree she has been saving towards. She obtained a loan of $800,000 to be repaid in four (4) annual instaiments at an interest rate of 15% compounded annually. Determine the following: A. What is the annual payment that will completely amortize the loan in four years? (3 marks) B. Prepare the amortization schedule for this loan. (12 marks) C. What is the total interest to be paid over the life of the loan? (I mark) D. She has the option of monthly payments instead with the annual interest rate remaining at 15%. Determine the monthly payments required to amortize the loan over the four-ycar period. (4 marks) (Total 20 marks)
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