Q1a. Assume you take a loan of $230,000. The loan is for 15 years, and the annual interest rate offered by bank is 5.50 per cent. If the cash repayment frequency is on quarterly basis and interest payment frequency is on monthly basis, using the worksheet Amortisation calculate the number of repayments, effective annual rate, effective quarterly rate, and size of repayment on the loan amount.

Q1b. Complete the loan amortisation table using worksheet Q1 showing all works clearly.

Q1c. Explain when it is better to pay principal and interest on a loan versus just interest to pay off the loan if interest remain low for the first five years as in Q1b but lets assume the interest rate is expected to increase for the last ten years of a 15-year loan? Explain your reasoning

The information from "Amortisation" worksheet is presented below. Complete the task in Q1a, Q1b and Q1c.
Iteams	Input variables
Loan amount ($)	$230,000.00
Term of loan (years)	15
Annual percentage rate (i = %) p.a	0.055
Interest rate compounding frequency (m)	12
Cash payment frequency (p)	4

Q1a.	Use this column to state formula (Excel formula) that you may consider to complete the yellow highlighted part on the right	Values
Number of repayments
Effective annual rate:
Effective quarterly rate:
Size of repayment

Q1b.
Based on the above complete the loan repayment schedule below with titles of the table provided. Note insert as many rows as you think is relevant to complete the loan amortisation table
Period (quarter)	Balance at the beginning	Repayment	Interest	Balance at the end