Mr Jones on his 59 th birthday wants to borrow some money. He can repay the loan with two payments of $5000 made at different times. The first payment when he turns 62 and the second when he turns 65. The current leading rate at the time of his 59 th birthday is 6.1%.

(a) How much will they lend Mr Jones?

(b) If he repays the loan in full, what rate of interest was realized?