no more information

A financial institution grants a loan of $200 000 to Stillwell Limited, a firm which makes brackets for construction industries. Cost of the debt is 12% per annum and the lender requires repayment in five equal instalments at the beginning of each year. Calculate the annual payment. (2 marks) Prepare an amortisation table for the loan repayment. (9 marks) What would be regular monthly payments? (2 marks) What is the effective rate of interest on the loan if interest is compounded quarterly? (2 marks) If Stillwell had borrowed $500 000 and repaid $1 000 000 over 5 years, what would have been the interest rate if interest were compounded monthly? (3 marks) Why does the interest portion of each payment decline with the passage of time? (2 marks)