INSTRUCTIONS: ANSWER ALL QUESTIONS IN EXCEL. PLEASE READ MORE INSTRUCTIONS AT THE END OF THE QUESTIONS.

$1.$ A university lecturer purchases an automobile using a loan scheme. The amount borrowed is P$400,000\mathrm{.}00$ and the terms of the loan call for the loan to be repaid over eight years using equal monthly payments with an annual nominal interest rate of $12\%$ and monthly compounding. What is the monthly payment?

$$ i$.$ What type of problem is this? $(1$ mark$)$

$$ ii$.$ What is the effective interest rate?$(3$ marks$)$

$$ iii.$$ What is the monthly payment? $(6$ marks$)$