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Paul- is a second year MBA student at North West University. Last year he failed to complete the researchmethodology module. He borrowed R25 000 from

Paul- is a second year MBA student at North West University. Last year he failed to complete the researchmethodology module. He borrowed R25 000 from First National Bank(FNB) at the beginning of this year so that he can repeat the module. Paul is required to repay the loan in equal instalments at the end of each year for the next five years. Assume that the interest rate is 10%.

Required:

a) How much interest will Paul pay in year 2?

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