1. Prepare (using a spreadsheet package) an entire duration amortization schedule as follows:

Initial amount: Shs 6,000,000/=; rate of interest: 12% per annum; period: 10 years payable monthly in arrears.

An additional amount of Shs 500,000/= is repaid with the 20^th installment, and the monthly installment recomputed to fully pay the loan balance in the initially agreed period.

The rate of interest is adjusted to 13% per annum with effect from the end of the fourth year. The monthly repayment is recomputed to fully pay the loan balance in twelve months less than the initially agreed period.

The borrower enhances his monthly repayments by Shs 15,000/= per month from the end of month 64.

The borrower is advanced an additional Shs 700,000/= at the end of month 70 and the monthly repayment is recomputed to fully pay the loan balance in the period that had initially been agreed upon.