Maple plc has decided to sell one of its subsidiaries and some of the subsidiary's senior managers have been assessing the possibility of a buyout. The subsidiary would cost 1.8m to acquire. The managers would invest 0.4m in the equity of the buyout and borrow the residual 1.4m. Discussions with a bank suggest a loan of 1.4m could be arranged. The loan would be at an interest rate of 12 per cent and would have to be repaid in six annual instalments. Determine the annual instalment. (4 marks)