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PROBLEM 4 AND 5

Problem 4. You borrowed some money from Ah Seng amounted to $ 25,000 over 6-year period with an 8% APR. Ah Seng demanded you to pay the loan on monthly basis. Prepare an amortization table for Ah Seng only for 3-month period. Problem 5. Assume that during a year where the nominal rate of interest is 8%, the CPI increases from 112 to 115. This means that a box of goods that costs RM 100 in some base year and RM 112 at the beginning of the year now costs RM 115 at the end of the year. Calculate the real rate of interest