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Ql You borrowed RM21,061.82 to finance the educational expenses for your senior year of college. The loan will be paid off over five years. The

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Ql You borrowed RM21,061.82 to finance the educational expenses for your senior year of college. The loan will be paid off over five years. The loan carries an interest rate of 6% per year and is to be repaid in equal annual installments over the next five years. Assume that the money was borrowed at the beginning of your senior year and that the first installment will be due a year later. Compute the amount of the annual installment and draw the cashflow diagram. 4 marks) Hewlett-Packard has completed a study indicating that RM50,000 in reduced maintenance this year (i.e, year zero) on one processing line resulted from improved wireless monitoring technology. i. If Hewlett-Packard considers these types ofsavings worth 20% per year, find equivalent value of this result after 5 years Q2 (2 marks) n I bhe RuSo.20 maintenanc savings ocurs now. fndis quivalent value 3 years earlier (2 marks)

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