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

Initial amount: Shs 7,000,000/=; rate of interest: 13.5% per annum; period: 12 years payable monthly in arrears.

An additional amount of Shs 640,000/= is repaid with the 25^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 15% per annum with effect from the end of the fifth year. The monthly repayment is recomputed to fully pay the loan balance in in two years less than had initially been agreed. The borrower enhances his monthly repayments by Shs 24,000/= per month from the end of month 76.

The borrower is advanced an additional Shs 1,200,000/= at the end of month 83 and the monthly repayment is recomputed to fully pay the loan balance in one year more than the latest duration adjustment.