Priya takes out a loan from the Deep Bay Bank for $30,000 to buy a new Prius. The interest rate changed is j26 = 7.54% p.a. The loan is to be repaid over 4 years with the first payment due in a fortnights time. The terms of the loan are that it is an interest only loan for the first year (first 26 payments), at which time it converts to a fully amortized P&I loan. a) Illustrate all the cash flows associated with this scenario as a fully labelled timeline diagram. [3 marks] b) Determine the size of the fortnightly payments made during the first year. Enter this value to the nearest cent as an answer to Assignment Module 1 Milestones question 3b. You can have as many attempts at this as you wish without penalty, but this question will close at 9:00pm on Wednesday 17 August. There will be no marks available for this question part after then. NB You do NOT need to include your workings for this question in your submitted assignment paper. [1 mark] c) Determine the size of the outstanding principal at the end of the first year. Enter this value to the nearest cent as an answer to Assignment Module 1 Milestones question 3c. You can have as many attempts at this as you wish without penalty, but this question will close at 9:00pm on Wednesday 17 August. There will be no marks available for this question part after then. NB You do NOT need to include your workings for this question in your submitted assignment paper. [1 mark]

d) Determine the size of the fortnightly payments during the P&I phase of the loan. Enter this value to the nearest cent